August 14, 2024 – Internet service provider Brightspeed announced that it has closed a multi-billion dollar financing deal that will strengthen its ability to successfully execute a fiber optic expansion plan.
The deal “strengthens our financial footing, provides the capital needed to achieve our long-term goals and puts us in a better position to receive funding from the Broadband Equity, Access and Deployment Program, as well as from states and the federal government,” Brightspeed said.
Through the financing transaction, Brightspeed will receive approximately $3.7 billion in capital from its financial investors, including all secured lenders and the funds managed by Apollo Global Management, to build out its fiber network, and will eliminate approximately $1.1 billion in total debt through modifications to the company’s existing loan and credit facilities.
According to Brightspeed, the financing secures the Ability to raise additional funds from the BEAD program, of which approximately $4.7 billion is available to the company under certain conditions.
“This landmark announcement builds on our strong momentum and provides the capital to advance our aggressive, multi-year plan to build a fiber optic network in communities lacking high-quality, high-speed connectivity options,” said CEO Tom Maguire“We have successfully connected 1.4 million homes and businesses with fiber and have expanded our construction plan with an expanded goal of reaching more than four million locations with our state-of-the-art fiber network.”
Brightspeed also announced that it has hired former Sprint CEO, Michel Combesas Chairman of the Board of Directors. The company will use the money to expand its fiber optic network Technology in 17 states.
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