Surf Internet has finalized on a $407 million fiber asset-backed securitization (ABS) that will enable the company to expand its network across the Great Lakes region.

It's the broadband provider's first ABS. According to Surf, the financing was executed through a newly formed, wholly owned subsidiary, Surf ABS Issuer LLC.

The ABS comprises a $332m offering of secured fiber network revenue term notes and a $75m variable funding note facility.

“This inaugural ABS transaction represents an important milestone in Surf’s continued evolution as a scaled and disciplined super-regional fiber platform,” said Ryan Delack, chief financial officer of Surf Internet.

“Our strong operating performance and consistent subscriber growth have enabled us to access the capital markets in a way that enhances our financial flexibility and supports long-term value creation. We believe this financing positions Surf to accelerate network expansion while continuing to invest in reliability, service quality, and the overall customer experience.”

Founded in 2001, Surf provides fiber optic Internet services to more than 50,000 customers across Illinois, Indiana, and Michigan. The company's network has extended to more than 140,000 homes.

Surf previously acquired the fiber-optic network assets of Michigan-based MiSignal in 2023, months after securing $100m worth of debt financing from DigitalBridge Credit, a division of DigitalBridge Group, Inc. to support the company's aims of driving its broadband rollout across the Great Lakes region.