HW Bulk Issuer securitization draws KBRA ratings for series 2026-1/2 notes

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Hotwire 2026-1/2 securitization

Highlights

KBRA assigned ratings to Series 2026-1 and 2026-2 Class A-1-L, A-2, and B notes issued by HW Bulk Issuer LLC under a new master trust structure.
Hotwire Communications' fourth securitization is secured by transferred fiber network assets and customer contracts, with proceeds partly used to repay existing facility debt.
As of June 30, 2026, HW Bulk Issuer's 906 U.S. fiber networks generate annualized run rate revenue of $306.8 million and net operating income of $215.7 million.

Ratings assignment and transaction structure

As reported by KBRA, citing Kroll Bond Rating Agency, KBRA assigns ratings to the Series 2026-1 Class A-1-L, Class A-2 and Class B notes, and to the Series 2026-2 Class A-2 and Class B notes issued by HW Bulk Issuer LLC.

The deal represents Hotwire Communications Ltd.'s fourth securitization and the first two series of notes issued by HW Bulk Issuer LLC under a new master trust. The transaction is secured by fiber network assets and customer contracts transferred from the existing securitization facility to a newly formed original asset entity.

A portion of the proceeds is used to repay applicable outstanding debt under the existing facility, while additional funds are allocated to reserve accounts, transaction expenses and other general corporate purposes.

Fiber asset base supports digital infrastructure financing

The issuer, through its asset entities, owns, manages and operates fiber optic communication systems that deliver digital infrastructure services to multi-dwelling units and multi-tenant properties, as well as some individual retail customers.

Its customer base includes homeowners' associations, condominium associations, apartments, student housing, hotels and municipalities served under long-term bulk contracts, along with bulk upsell and retail contracts. The underlying assets consist primarily of fiber-to-the-home infrastructure, related easements, rights of use, access agreements and a shared infrastructure services agreement needed to operate the networks.

As of the June 30, 2026 cut-off date, the issuer provides internet and cable services through 906 networks. Those networks have aggregate annualized run rate revenue of about $306.8 million and annualized run rate net operating income of about $215.7 million, underscoring the scale of the platform in the U.S. communications infrastructure sector.

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