Uniti Group subsidiary prices $1.14B secured fiber network notes
What's the deal? Kinetic ABS Issuer, a subsidiary of Uniti GroupDealroom has a profile for this one. Try Dealroom →, has priced a $1.14 billion secured fibre network revenue notes offering. The deal spans three tranches: $805.2M in Class A-2 notes at 5.834%, $134.2M in Class B notes at 6.224%, and $201.3M in Class C notes at 7.536%.
The notes carry a weighted average coupon rate of roughly 6.18% and are expected to mature in June 2033. Proceeds will fund capital expenditures and debt repayment.
Why now? The offering comes as fibre infrastructure remains a high-priority investment across the US telecom sector. Kinetic ABS Issuer also plans to expand its existing liquidity funding note facility to meet higher reserve requirements — a sign it is preparing for increased capital needs ahead.
What could go wrong? The notes are backed by residential fibre network assets and customer agreements across 10 US states, including Texas, Arkansas, Kentucky, Ohio, Georgia, Iowa, Alabama, Florida, North Carolina, and Oklahoma. That geographic spread offers diversification but also exposes investors to regional economic downturns or customer churn in any of those markets.
A weighted average rate of 6.18% is not cheap. If interest rates fall meaningfully before the 2033 maturity, Uniti could find itself locked into above-market borrowing costs.
The signal: Uniti Group, classified as a late-growth stage diversified telecom provider on Dealroom, is leaning heavily on structured finance to fund its next phase of expansion. The successful pricing of a $1.14 billion securitisation backed by residential fibre assets across 10 US states suggests that investor appetite for yield tied to recurring-revenue infrastructure remains robust — and that asset-backed deals are becoming a standard capital tool for fibre operators navigating high build-out costs alongside existing debt loads.
Read more: intellectia.ai
