Dashboard › Demo Universe › Redwood Broadband
Redwood Broadband · RWBB
DEMO DATAUNDERWRITING ASSUMPTIONHOLDDEMO DATA — fictional company with illustrative numbers.
Regional cable and fiber operator with accelerating customer losses and the largest debt load in our universe.
Recommendation
HOLD
1 core test(s) failed
Credit score
36 / 100
High
Base IRR
18.3%
vs hurdle 12.0%
Downside IRR
11.0%
default case
Severe recovery
6%
IRR -40.6%
Net leverage
6.7x
FY2025A
EBITDA / interest
1.75x
FY2025A
Overview
| Sector / industry | Telecom / Regional Fiber & Cable |
| Headquarters | Denver, CO |
| Revenue (FY2025A) | $1.6B |
| EBITDA (FY2025A) | $608M |
| Total debt (face value) | $4.2B |
| Cash | $150M |
| Net debt | $4.0B |
| Asset / collateral base | $5.2B |
| Enterprise value (assumed multiple) | $3.9B |
Investment thesis UNDERWRITING ASSUMPTION
Network assets (~$5.2B replacement-cost-based) provide asset coverage of 1.2x of total debt, but cash flow after capex is negative. The 10.5% second-lien at 78 is the fulcrum candidate in a restructuring where unsecured holders are the first to take losses.
| Instrument | Second-Lien Notes 10.50% |
| Face value / purchase price / cash investment | $100M / 78.0 / $78.4M UNDERWRITING ASSUMPTION |
| Current yield · yield to maturity | 13.5% · 21.3% |
Key protections
- Equitization optionality at the fulcrum
- 13%+ current yield
- Strategic interest in fiber assets
Key risks
- Customer losses to fixed wireless
- Capex burn
- Fulcrum risk if EV falls below first-lien claims
Key catalysts
- Revolver Dec-2027 maturity
- Fiber asset sale process
- Capex cut announcement
Data-quality notes
- All figures are fictional and illustrative.
Sources & data lineage (3)
| Source | Document | Data type | Period | Accession | Doc date | Retrieved | Class |
|---|---|---|---|---|---|---|---|
| CreditIQ demo dataset | Redwood Broadband — illustrative financial statements FY2022–FY2025 | Income statement / cash flow | FY2022–FY2025 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |
| CreditIQ demo dataset | Redwood Broadband — illustrative capital structure & covenants | Debt schedule | As of 2026-03-31 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |
| CreditIQ demo dataset | Illustrative indicative bid marks (% of par) | Market price | 2026-03-31 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |