Surf Internet Secures $407M in Landmark Deal to Supercharge Rural Fiber Expansion

ELKHART, IN – March 04, 2026 – In a move that underscores soaring investor confidence in digital infrastructure, Surf Internet has successfully closed a $407 million financing deal, its first-ever asset-backed securitization (ABS). The transaction provides a massive capital injection aimed at accelerating the deployment of high-speed fiber-optic internet to underserved rural communities across the Great Lakes region.

The deal, structured and placed solely by Goldman Sachs, represents a significant milestone for the Elkhart-based internet service provider. It not only strengthens the company’s long-term financial foundation but also validates fiber networks as a mature and highly sought-after asset class among institutional investors.

A New Frontier in Fiber Finance

The financing is a sophisticated instrument known as an asset-backed securitization, where future revenue from Surf's growing subscriber base is bundled and sold to investors as notes. The structure consists of a $332 million offering of secured fiber network revenue term notes and a $75 million variable funding note facility, providing both immediate capital and future financial flexibility.

Investor appetite for the deal was exceptionally strong, with the offering being oversubscribed several times over by a mix of asset managers, insurance accounts, and credit funds. This robust demand allowed the deal to be priced tightly compared to its peers. The term notes were issued in several classes, with the Class A-2 notes receiving a strong A- rating, signaling a high degree of confidence in the stability and predictability of the underlying assets—the physical fiber network and its customer contracts.

This transaction is part of a larger trend in the telecommunications industry. The fiber ABS market has exploded in recent years, growing from a niche concept to a mainstream financing tool. Cumulative issuance has already surpassed $12 billion in the U.S., as fiber operators seek efficient ways to fund the capital-intensive work of laying new networks. For companies like Surf, securitization offers a cost-effective alternative to traditional corporate debt or equity raises, allowing them to scale more rapidly.

“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.”

Bridging the Digital Divide in America's Heartland

Beyond the financial complexities, the core of this story lies in its real-world impact. Surf Internet has built its mission around being the “essential gateway to connectivity” for homes and businesses in the often-overlooked rural communities of Illinois, Indiana, and Michigan. This new funding is a direct catalyst for that mission.

The capital will be deployed to accelerate network expansion, bringing reliable, high-speed internet to areas that have long been hampered by slow, outdated, or nonexistent connections. For residents in these regions, the arrival of fiber represents a transformational shift. It enables seamless remote work and learning, provides access to telehealth services, empowers local entrepreneurs to compete in a global market, and enhances overall quality of life.

Surf's local-first approach, with a team of over 350 employees living and working in the regions they serve, has been a key part of its success. This deep community integration allows the company to better understand the specific needs of its customers and act as a true advocate for regional development. The expansion funded by the ABS deal promises to create a powerful ripple effect, stimulating local economies and providing the foundational infrastructure for future growth and prosperity.

A Strategic Play for Regional Dominance

The $407 million war chest positions Surf Internet to solidify its status as a dominant 'super-regional' fiber provider. In the competitive landscape of internet service, which includes large national incumbents and a host of smaller players, this level of financing provides a significant strategic advantage. It allows Surf to build faster and more aggressively, capturing market share in valuable territories before competitors can mobilize.

Bain Capital, a key investor backing Surf, sees this as a pivotal moment. “Surf’s ability to execute this transaction reflects the quality of its network assets and the depth of demand for its services,” said David Haswell, a Director at Bain Capital. “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.”

This strategic capital infusion is not merely about expansion; it's also earmarked for continuous investment in network reliability, service quality, and the overall customer experience. By controlling the entire process from financing and construction to customer service, Surf aims to differentiate itself in a crowded market. As the company extends its fiber lines across the fields and towns of the Great Lakes, this deal ensures it has the resources not just to build a network, but to build a lasting and leading presence in the future of American connectivity.