Surf Internet closed on a $407 million inaugural asset-backed securitization March 4. The financing will help the Elkhart-based fiber provider's expansion plans amid strong investor demand and subscription growth.
Surf ABS Issuer LLC was formed as a subsidiary to offer $332 million in secured fiber network revenue term notes and a $75 million variable funding note facility.
“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,” said Ryan Delack, chief financial officer of Surf Internet, in a press release. “We believe this financing positions Surf to accelerate network expansion while continuing to invest in reliability, service quality and the overall customer experience.”
According to Investopedia, an “asset-backed securities (are) a type of financial investment that is collateralized by an underlying pool of assets — usually ones that generate a cash flow from debt, such as loans, leases, credit card balances or receivables.”
Bain Capital, along with Post Road Group, acquired Surf Internet in 2021. David Haswell, director at Bain Capital, sees the transaction as a big win for Surf.
“Surf’s ability to execute this transaction reflects the quality of its network assets and the depth of demand for its services,” Haswell said. “We believe the company is well-positioned to continue expanding its footprint and delivering reliable connectivity to more communities, supported by a durable and thoughtfully structured capital foundation.”
The transaction was supported by Goldman Sachs as structuring agent and placement agent. Kirkland & Ellis and Ropes & Gray provided legal counsel.
Surf Internet provides high-speed internet to homes and businesses in Indiana, Illinois and Michigan. Besides headquarters in Elkhart, it has offices in La Porte; Byron Center and Fowlerville, Michigan; and Coal City, Naperville and Rock Falls, Illinois. Surf employs about 350 team members, 90 of whom were hired in 2025. The company reached 250,000 homes passed in late 2025.
