Conterra Ultra Broadband, a provider of fiber-optic network-based infrastructure and services, completed a debt capital raise totaling $580 million, which the company will use to refinance existing credit facilities, optimize its capital structure and provide additional capacity to support growth.
The debt capital raise includes an investment grade rated senior structure made up of senior facilities comprised of a term loan and revolving credit facilities being provided by CIBC, National Bank of Canada, NordLB, SMBC and Export Development Canada, as well as senior notes being provided by MetLife Investment Management and IFM. The private investment grade rating is underpinned by the long-term infrastructure characteristics of Conterra’s assets and business, which provide telecommunications services to carriers, schools and commercial customers. In addition, the debt capital raise includes a structurally subordinated midco term facility, provided by Nomura.
“We appreciate the strong support of Conterra’s new lenders and look forward to working with them as Conterra continues to grow its business,” Jamie Crotin, managing director of a mid-market direct infrastructure investor Fiera Infrastructure, said.
“This successful refinancing with leading lenders underscores the quality of Conterra’s network,” Steven Hason, managing director and head of Americas real assets at pension provider APG, said. “The proceeds from refinancing will be aimed at funding responsible growth and creating long-term value in the communities that Conterra’s networks serve, as well as for the company’s investors.”
“This refinancing provides Conterra with growth capital to support our continued expansion to densify our network in our focus areas and launch additional advanced services for our customers,” Craig Gunderson, president and CEO of Conterra, said.
“We are extremely pleased with the outcome of the refinancing, which offers significant operating flexibility to Conterra,” Steve Keaveney, CFO of Conterra, said. “We are delighted to build a long-term partnership with our new lender partners.”
Daiwa Corporate Advisory and TD Securities acted as financial advisors and placement agents and Latham & Watkins acted as legal counsel to Conterra on the debt capital raise. White & Case acted as lender counsel on the refinancing.-
