Conterra Networks Completes $580 Million Debt Capital Raise

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Conterra Ultra Broadband Holdings, Inc.

Apr 25, 2024, 10:56 ET

CHARLOTTE, N.C., April 25, 2024 /PRNewswire/ -- Conterra Ultra Broadband Holdings, Inc. ("Conterra Networks", "Conterra" or "the Company"), a national leader in providing fiber-optic network-based infrastructure and services, announced today the completion of a debt capital raise totaling $580 million, which will be used to refinance existing credit facilities, optimize Conterra's capital structure, and provide additional capacity to support Conterra's growth.

Conterra Networks, headquartered in Charlotte, North Carolina, is one of the largest independent local providers of fiber-based services in the United States, with a 14,000-route mile fiber network that brings high-capacity middle and last-mile fiber-based services to telecommunication carriers, school districts, and commercial customers across 14 states in the Southeast, South Central and Western US. Conterra is owned by affiliates of each of APG Group NV ("APG") and Fiera Infrastructure Inc. ("Fiera Infrastructure").

The structure is a first of its kind within the digital market in the USA. Key highlights of the debt capital raise include:

Investment Grade-Rated Senior Structure: 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 essential telecommunications services to carriers, schools and commercial customers.
Structurally Subordinated Midco Term Facility: provided by Nomura, this component further optimizes the Company's capital structure.

Jamie Crotin, Managing Director of Fiera Infrastructure, said, "We appreciate the strong support of Conterra's new lenders and look forward to working with them as Conterra continues to grow its business."

Steven Hason, Managing Director and Head of Americas Real Assets at APG, further commented, "This successful refinancing with leading lenders underscores the quality of Conterra's network. 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."

Craig Gunderson, President & CEO of Conterra, commented, "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." Steve Keaveney, CFO of Conterra, echoed similar sentiments and added, "We are extremely pleased with the outcome of the refinancing, which offers significant operating flexibility to Conterra. We are delighted to build a long-term partnership with our new lender partners."

Advisors and Agents
Daiwa Corporate Advisory LLC (DC Advisory) and TD Securities acted as financial advisors and placement agents and Latham & Watkins acted as legal counsel to Conterra. White & Case acted as lender counsel on the refinancing.

About Conterra Networks
Conterra Networks is a national leader in the design, deployment, and operation of fiber-optic network-based services, providing advanced high-capacity communications networks to education, healthcare, government, carrier, and enterprise customers across the United States. With over 14,000 route miles of fiber and more than 8,000 on-net locations, Conterra offers a robust, flexible, and secure fiber network backbone optimized for low-latency and high-bandwidth applications. Conterra is owned by affiliates of APG and Fiera Infrastructure. For more information, please visit www.conterra.com.

About APG
As the largest pension provider in the Netherlands APG looks after the pensions of 4.6 million participants. APG provides executive consultancy, asset management, pension administration, pension communication and employer services. We work for pension funds and employers in the sectors of education, government, construction, cleaning, housing associations, sheltered employment organizations, medical specialists, and architects. APG manages approximately €569 billion (December 2023) in pension assets. With approximately 4,500 employees we work from Heerlen, Amsterdam, Brussels, New York, Hong Kong, Singapore and Shanghai.

APG has been an active infrastructure investor since 2004, investing approximately €26.0 billion to date and managing over 36 direct stakes in portfolio companies. APG's investments include assets within energy and utilities, telecommunications, and transport infrastructure. For more information, please visit https://assetmanagement.apg.nl/

About Fiera Infrastructure
Fiera Infrastructure is a leading global mid-market direct infrastructure investor operating across all subsectors of the infrastructure asset class and an affiliate of Fiera Capital Corporation. Led by a team of highly experienced and specialized professionals, the firm leverages strong global relationships, with a local presence in Toronto, London, and New York. Its rigorous approach to investment and asset management aligns with its long-term approach. Fiera Infrastructure has assets under management and commitments of C$4.0 billion as of March 31, 2024. The firm has invested in more than 90 infrastructure assets across telecommunications, renewables, transportation, and public-private partnerships. For further information, please visit www.fierainfrastructure.com.

SOURCE Conterra Ultra Broadband Holdings, Inc.