KBRA Assigns Preliminary Ratings to Hotwire Funding LLC, Series 2024-1
May 17 2024 - 5:33PM
Business Wire
KBRA is assigning preliminary ratings to the Series 2024-1 Class
A-2 Notes, Class B Notes, and Class C Notes (together, the Series
2024-1 Notes) from Hotwire Funding, LLC, (the Issuer), a
communications infrastructure securitization.
Hotwire 2024-1 represents Hotwire Communications, Ltd.’s
(Hotwire, the Company or the Parent) third securitization from its
master trust, of which approximately $2.2 billion is currently
outstanding, assuming the Class A-1-V variable funding notes are
fully drawn. The outstanding prior Series 2021-1 Notes and Series
2023-1 Notes, and Series 2024-1 Notes (altogether, the Notes) share
in the same collateral pool. KBRA re-analyzed the outstanding
Series 2021-1 Notes and Series 2023-1 Notes in conjunction with the
issuance of the Series 2024-1 Notes, and anticipates affirming all
of the outstanding ratings as of the Series 2024-1 closing
date.
The business of the Issuer is to own, manage and operate fiber
optic infrastructure for the delivery of services to customers
including, but not limited to, data services, IP-delivered voice
services, as well as other revenue-generating services. The assets
will consist primarily of fiber-to-the-premise infrastructure,
certain headend, colocation, and other facilities and equipment
that transmit broadband-based services, the middle mile fiber
networks delivering certain content and data from the headend and
other facilities to the fiber networks, related easements, rights
of use and other access agreements (collectively, Fiber Network
Assets).
As of May 1, 2024, (the Series 2024-1 Cut-off Date or Cut-off
Date), the Issuer provides internet and cable services through 934
networks, which have an aggregate Annualized Run Rate Revenue of
approximately $346.7 million and an Annualized Run Rate Net
Operating Income of approximately $225.2 million.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Communications Infrastructure Securitization (CIS) Global
Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004332
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240517003740/en/
Analytical Contacts
Matthew Gardener, Director (Lead Analyst) +1 646-731-1276
matthew.gardener@kbra.com
Xilun Chen, Managing Director +1 646-731-2431
xilun.chen@kbra.com
Fred Perreten, Managing Director +1 646-731-2454
fred.perreten@kbra.com
Sam Kwak, Associate Director +1 646-731-1319
sam.kwak@kbra.com
Preston Boutwell, Associate +1 646-731-2367
preston.boutwell@kbra.com
Thomas Berle Carman, Associate +1 646-731-1241
thomas.carman@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development Contacts
Rosemary Kelley, Senior Managing Director, Head of Structured
Finance and Project Finance +1 646-731-2337
rosemary.kelley@kbra.com
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com