Everstream Secures Over $1 Billion for Refinancing, Debt Capital Arrangement

First U.S. telecommunications infrastructure company to leverage an OpCo/HoldCo financing model.

  • Everstream

 

CLEVELAND – Everstream has secured more than $1 billion in debt financing to refinance existing credit facilities and raise additional capital to continue funding network growth and densification across its 10-state footprint. The deal marks the first time a U.S. based telecommunications company has leveraged an OpCo/HoldCo financing model, driven by demand from Institutional Infrastructure investors.

Everstream, which is majority owned by AMP Capital, is bringing high-capacity fiber connectivity to metro and rural areas across the Midwest and Mid-Atlantic. Consistent with its mission to bring speed, reliability, scale, and performance to its customers, the company increased its total route miles of fiber by 80% in 2021, growing to nearly 27,000 route miles.

“The role of communications infrastructure is increasingly critical, with technologies and services such as fiber and data centers leading the way,” said Sam Sixt, Investment Director at AMP Capital and Board Member of Everstream. “Through its successes to date, Everstream has demonstrated it has both the vision for the next generation of communications and the ability to execute on that vision. We are very pleased that the latest round of financing will support Everstream during its next phase of growth.”

“As data usage continues to skyrocket, a reliable, scalable fiber backbone is critical to delivering next-generation technologies and services to our business customers,” said Everstream CEO Brett Lindsey. “This latest round of financing has demonstrated that our partners have confidence in Everstream’s strategy to grow and densify our best-in-class network across our footprint.”

The debt package includes a senior and junior tranche, which was anchored by a diverse group of lenders:

  • Societe Generale as Coordinating and Structuring Bank, Global Coordinating Bookrunner, Joint Lead Arranger and Administrative Agent
  • Natixis as Global Coordinating Bookrunner and Joint Lead Arranger
  • ING, Santander and SMBC as Joint Bookrunners and Joint Lead Arrangers
  • CoBank, Macquarie, RBC, TD Bank, and Vantage Infrastructure as Joint Lead Arrangers
  • DigitalBridge Credit, in partnership with a wholly-owned subsidiary of CPP Investments, as lender to the junior tranche

“This innovative financing solution provides Everstream with the flexibility and runway to build critical infrastructure that underpins the demands of its customers,” said Aman Sareen, Director at AMP Capital. “The caliber of institutions, which features a strong cross section of banks and infrastructure investors, speaks to the high-quality nature of the asset and best-in-class management team.”

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