Surf Internet, a fiber-optic internet service provider, secured an upsized $200 million debt facility from an existing lending group consisting of DigitalBridge Credit and Canada Pension Plan Investment Board (through its subsidiary, CPPIB Credit Investments), as well as a new commitment from Boundary Street Capital. Surf Internet secured the incremental debt capital to support and continue the company’s mission to transform broadband in the Great Lakes region by expanding its dense fiber networks into more communities.
The upsizing will double the company’s existing $100 million debt facility put in place in February of this year, which was used to fund the company’s 2023 strategic growth plan. In November, Surf announced that it had completed its 100,000th passing of fiber-optic connectivity across Indiana, Illinois and Michigan.
“We are thrilled to enter the next phase of accelerated expansion with continued support from our highly experienced digital infrastructure investment partners who all share our vision for building Surf into one of the leading fiber-to-the-premise providers in the country,” Gene Crusie, CEO of Surf Internet, said.
“We are pleased to continue our partnership with DigitalBridge Credit and CPP Credit Investments, as well as bringing in our new partner, Boundary Street, through this meaningful debt upsizing,” Ryan Delack, CFO of Surf Internet, said. “Our lending partners have been steadfast in their conviction in Surf Internet, alongside our equity partners, Bain Capital and Post Road Group, who remain committed to our growth strategy.”
The incremental capital will support Surf’s plan to expand its network while strengthening its multigig capabilities. Surf has a pipeline of build opportunities to nearly double its fiber passings in 2024.
“We are proud to partner with CPP Credit Investments and Boundary Street in accelerating the deployment of fiber-to-the-premise buildouts, driven by a strong demand for connectivity,” Chris Moon, managing director at DigitalBridge Credit, said. “We are excited to contribute to this next phase of growth and value creation, continuing our support for Gene, Ryan and the entire team at Surf Internet.”
The transaction closed on Dec. 12, 2023. Houlihan Lokey served as exclusive financial advisor and placement agent to Surf Internet and Kirkland & Ellis served as legal counsel. White & Case served as legal counsel to DigitalBridge Credit as the lead lender.
