Blue Stream securitization draws preliminary KBRA ratings

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Blue Stream securitization ratings

Highlights

KBRA assigned preliminary ratings to Blue Stream Issuer, LLC Series 2026-1 and plans to withdraw Series 2023-1 Class A-2, B, and C Notes after repayment.
Sale of Blue Stream 2026-1 notes will refinance Series 2023-1 Term Notes, repay Series 2023-1 Class A-1-V Notes, credit facility, and fund transaction accounts.
As of July 31, 2026, Blue Stream operates 407 networks in Florida and Texas, with $154.9 million annualized revenue and $99.7 million annualized net operating income.

Series 2026-1 structure and repayment plan

As reported by Kroll Bond Rating Agency, KBRA assigns preliminary ratings to Blue Stream Issuer, LLC Series 2026-1 and expects to affirm the outstanding ratings on the Series 2023-1 Class A-1-V Notes and Series 2024-1 Notes. The agency also anticipates withdrawing the ratings on the Series 2023-1 Class A-2, Class B and Class C Notes after those notes are repaid at the closing of Series 2026-1.

Blue Stream 2026-1 is the third securitization for Blue Stream Communications LLC. Proceeds from the sale of the notes are primarily earmarked to repay the outstanding Series 2023-1 Term Notes, repay the outstanding balance of the Series 2023-1 Class A-1-V Notes, repay part of the company’s existing credit facility, fund transaction accounts including a prefunding account, cover certain expenses, and support general corporate purposes.

Fiber network footprint and operating profile

The issuer owns, manages and operates fiber optic communication systems that deliver digital infrastructure services to multi-dwelling units and multi-tenant properties. Its customer base includes homeowners’ associations, condominium associations, hotels and municipalities, as well as individual residents within a community and residents served under a Right of Entry contract.

The asset pool consists mainly of fiber-to-the-home infrastructure and, in limited cases, coaxial cable, along with related easements, usage rights, access agreements, customer contracts and a shared infrastructure services agreement tied to network operations. Each group of fiber network assets serving a specific community is referred to as a Fiber Network.

As of July 31, 2026, the issuer provides internet and cable services through 407 networks located primarily across Florida, with some networks in Texas. Those networks generate aggregate annualized run rate revenue of about $154.9 million and annualized run rate net operating income of about $99.7 million.

Our earlier article on the U.S. AI data center buildout highlighted how surging costs, construction delays, and power-grid constraints are challenging developers’ ability to deliver projects on time. It also noted that tighter funding conditions and weakening investor sentiment are raising doubts about how much planned capacity will actually be built, even as demand remains strong.

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