Brightspeed announced this week the completion of a multi-billion-dollar transaction with its financial partners to and secure capital to expand their fiber network and “reinforce its financial foundation,” according to a press release.
Through the transaction, Brightspeed receives approximately $3.7 billion in new capital from its financial stakeholders, including all of its secured lenders and funds managed by Apollo Global Management.
“This landmark announcement builds on our strong momentum and provides the capital to advance our aggressive, multi-year plan to build a fiber network in communities that lack quality, high-speed connectivity options,” said CEO Tom Maguire.
“We have successfully brought fiber connectivity to 1.4 million homes and businesses and have upsized our build plan with an expanded goal of reaching more than four million locations with our state-of-the-art fiber network. The confidence and support of our financial partners is an encouraging testament to the milestones we have achieved so far, and I look forward to continuing to execute on our plan as we usher in a new era of connectivity.”
The transaction will fund Brightspeed’s fiber build, eliminate approximately $1.1 billion of total debt through amendments to the company’s existing loan and credit facilities, and secure the ability to pursue access to additional funding through the BEAD program, of which approximately $4.7 billion is available across the company's footprint, subject to certain conditions.
“Since our partnership began in 2021, we have continued to believe in Brightspeed’s mission to build a fiber network in communities that lack high-speed connectivity options,” said Aaron Sobel, Partner at Apollo. “We are confident in Brightspeed’s ability to execute on its build plan and pleased to remain a part of the company’s growth story as it works to achieve its goal to bridge the digital divide.”
New Board Chair
The company also announced that it has appointed Michel Combes to serve as Chair of its Board of Directors, effective immediately. Combes served as CEO of Softbank Group International, Sprint, and other telecom companies. Combes succeeds Bob Mudge as Chair, who will continue to serve on the Board.
As we welcome Michel to help lead the company into the future, we are deeply grateful to Bob for his immeasurable contributions to Brightspeed during his time as CEO and as Chair and look forward to continuing to benefit from his guidance and expertise as a member of the Board,” said Sobel.