Gateway Fiber, a fiber-to-the-home internet provider, closed a senior secured debt facility, providing additional funding for the provider to continue expanding its growing network.
Exceeding its initial fundraising target, Gateway raised $175.5 million of debt financing with Texas Capital Bank acting as the administrative agent and Texas Capital Securities as lead arranger alongside four joint lead arrangers: Hancock Whitney Bank, JPMorgan Chase Bank, Sunflower Bank, and Third Coast Bank.
“We’re excited about this new partnership with Texas Capital Bank and our lending group,” Chris Surdo, president of Gateway Fiber, said. “We can now accelerate our growth plans across multiple markets.”
The combination of the new credit facility and the ongoing support of Gateway’s equity sponsor, CBRE Investment Management, a global real assets investment management firm, provides Gateway with capital to pursue expansion in Missouri, Minnesota and Massachusetts.
“The Gateway team has proven their ability to expand into attractive markets and acquire customers with a customer-first approach, validating the platform’s execution capabilities and the market’s demand for fiber,” Noi Spyratos, managing director, private infrastructure at CBRE Investment Management, said.
“We appreciate the tremendous support of our lenders and CBRE IM,” Betsy Toney, chief financial officer of Gateway Fiber, said. “With a strong balance sheet and great capital partners, we are confident in expanding our platform and taking advantage of opportunities in the FTTH market. As we grow, we will continue to invest in our capabilities to ensure continued best-in-class quality of service for our customers.”
