KBRA assigns preliminary ratings to the Series 2026-1 Class A-1-L, Class A-1-V, Class A-2, and Class B Notes, and the Series 2026-2 Class A-2, and Class B Notes (together, the Series 2026-1/2 Notes) from HW Bulk Issuer LLC, (the Issuer), a communications infrastructure securitization.

HW Bulk Issuer 2026-1/2 represents Hotwire Communications, Ltd.’s (Hotwire or the Company) fourth securitization, and the first two series of Notes issued by HW Bulk Issuer LLC (the Issuer) under a newly established master trust. The transaction will be secured by Fiber Network Assets and Customer Contracts transferred from the existing securitization facility to the newly formed Original Asset Entity. A portion of the issuance proceeds will be used to repay applicable outstanding indebtedness under the existing facility, fund certain reserve accounts, pay transaction expenses, among other general corporate purposes.

The business of the Issuer, through its Asset Entities, is to own, manage and operate fiber optic communication systems for the delivery of digital infrastructure services (Services). These Services are provided to multi-dwelling units (MDUs) and/or multi-tenant properties including homeowners’ associations (HOAs), condominium associations (COAs), apartments, student housing, hotels and municipalities (each a Bulk Community), pursuant to long-term contracts providing residents with certain packaged services for a bulk rate (Bulk Contracts), bulk upsell contracts where residents receive certain packaged services in addition to their standard bulk package (Bulk Upsell Contract), as well as individual residents that do not reside in a Bulk Community (Retail Community) through Retail Contracts. The assets will consist primarily of fiber-to-the-home (FTTH) infrastructure, related easements, rights of use and other access agreements (collectively, Fiber Network Assets), related customer contracts and a shared infrastructure services agreement for use of certain shared assets necessary to operate such Fiber Network Assets. Each collection of Fiber Network Assets within a specific Bulk or Retail Community is referred to as a “Fiber Network”, and each customer contract with a Bulk Community is referred to herein as a “Bulk Contract”.

As of June 30, 2026 (the Series 2026-1/2 Cut-off Date or Cut-off Date), the Issuer provides internet and cable services through 906 networks, which have an aggregate annualized run rate revenue (ARRR) of approximately $306.8 million and an annualized run rate net operating income (ARRNOI) of approximately $215.7 million.

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Methodologies

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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