TD Securities served as joint lead arranger, joint bookrunner and administrative agent on C$255 ($180.58) million in financing to support the recapitalization of Beanfield Metroconnect by Digital Colony. The financing includes a first lien term loan and a revolving credit facility. RBC Capital Markets and SunTrust Robinson Humphrey served as joint lead arrangers and joint bookrunners.
“We appreciate the support of our lenders, who didn’t hesitate to provide this crucial financing despite the challenging market,” Sadiq Malik, managing director at Digital Colony, said. “Through this strategic recapitalization, Beanfield has added financial flexibility and is positioned for continued growth in its markets.”
In connection with this transaction, Beanfield acquired the metro network of Aptum Technologies, a global hybrid cloud and managed services provider. Through the acquisition of Aptum’s metro network, Beanfield will enhance connectivity services and fiber solution capabilities in Toronto while expanding its presence in Montreal following the recent acquisition of regional telecom fiber services provider OpenFace.
“This transaction exemplifies our approach to underwriting and our commitment to fostering growth in exceptional businesses with strong management teams,” Steven Sonnenstein, managing director at Digital Colony, said. “Today’s recapitalization underpins our confidence in the continued opportunities for growth that result from the unrelenting focus on the customer experience and high quality services that are at the core of Beanfield’s business.”
Since Digital Colony made an investment in 2019, Beanfield has grown its network footprint 10-fold from approximately 400 route KM to more than 4,000 across markets. The company’s ability to service on-net buildings has also increased almost six-fold from approximately 550 buildings to 3,200 buildings.
“In today’s environment, the need for connectivity has only grown as networks experience unprecedented demand,” Dan Armstrong, CEO of Beanfield Metroconnect, said. “At Beanfield, we have always invested in building communities — not just networks. We expect our employees, customers and valued partners in Canada’s two largest regions will see numerous benefits from this strategic recapitalization as we expand our offerings and increase our investment in robust fiber networks.”
Digital Colony is the global digital infrastructure investment platform of Colony Capital and a digital infrastructure investment firm with more than $20 billion in assets under management.
Beanfield Metroconnect provides telecom services to more than 3,200 commercial and residential buildings and operates four boutique colocation facilities at connection points within its fiber network.