Fidium Closes on $665 Million Asset-Backed Securitization

Paul, Weiss advised Searchlight Capital Partners, LLC, and its portfolio company Fidium, a next-generation fiber internet and network services company, on its third fiber securitization transaction. The transaction consisted of asset-backed term notes totaling approximately $664.6 million, secured by all existing and future fiber-enabled customers across the company’s footprint and the fiber optic and network infrastructure to support these customers.

The notes issued were all Series 2026-1 notes due March 2031: $501.2 million of 5.1% Class A-2 notes; $77.4 million of 5.4% Class B notes; and $86.0 million of 7.0% Class C notes. The proceeds of the transaction will be used to repay certain existing indebtedness, including all outstanding loans under the outstanding revolving warehouse facility, and for general corporate purposes.

The Paul, Weiss team was led by corporate partner Mikhel Schecter and associate Monica Hanna, and included tax partner Reuven Garrett.