Xplornet Communications closes US $1.2B debt financing

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By CPE News

CPE News (10/4/2021) – Xplornet Communications Inc., a portfolio company of Stonepeak Infrastructure Partners, has closed on a term loan financing transaction consistsing of a seven year first-lien facility of US $995 million and an eight year second-lien facility of US $200 million, totalling US $1,195 billion or CDN $1.5 billion. In addition to the two term loans, Xplornet will have a CDN $160 million revolver due 2026, that is undrawn at close.

Credit Suisse lead the deal and the arranger group included BMO Capital Markets, Barclays, Natixis Canada and Morgan Stanley.

Funding will be used to finance the successful acquisition of 3500 MHz spectrum in the recent Canadian auction, refinance the company’s existing first-lien term loan, and for general corporate purposes.

Woodstock, New Brunswick based Xplornet Communications Inc. is Canada’s largest rural-focused broadband service provider, offering voice and data communication services through its unique fibre wireless and satellite network.

Stonepeak Infrastructure Partners acquired majority stake in Xplornet in June 2020.

photo credit: Xplornet

News Release

Xplornet Communications Inc. Completes Financing of $1.5 Billion

Xplornet has Refinanced and Expanded its Debt Facilities, Enhancing the Company’s Financial Flexibility to Accelerate its Fibre-to-the-Home and 5G Wireless Broadband Plan

WOODSTOCK, NB, Oct. 4, 2021 /CNW/ – On October 1, 2021, Xplornet Communications Inc., Canada’s largest rural-focused broadband provider, closed on a term loan financing transaction that encompassed a seven year first-lien facility of US $995 million and an eight year second-lien facility of US $200 million, totaling approximately CDN $1.5 Billion. In addition to the two term loans, Xplornet will have a C$160 million revolver due 2026, that is undrawn at close.

Proceeds of this financing will be used to finance the successful acquisition of 3500 MHz spectrum in the recent Canadian auction, refinance the company’s existing first-lien term loan, and for general corporate purposes.

By taking advantage of low borrowing costs and actively managing its medium-term maturity profile, Xplornet has enhanced its ability to accelerate the rollout of its fibre-to-the-home and 5G wireless broadband network. This step is consistent with Xplornet’s strategy to proactively invest in next generation broadband technology and accelerating its deployment plans to bring fast, reliable and affordable Internet service to rural Canadians.

“We are pleased with the outcome of this financing process. It supports our fibre-to-the-home and 5G wireless broadband expansion plans for the benefit of our rural customers in Canada,” said Kurban Khanbhai, Chief Financial Officer of Xplornet Communications Inc.

Credit Suisse lead the deal and the arranger group included BMO Capital Markets, Banclays, Natixis Canada and Morgan Stanley.

About Xplornet Communications Inc.

Headquartered in Woodstock, New Brunswick, Xplornet Communications Inc. is one of Canada’s leading broadband service providers. For over a decade, Xplornet has been providing innovative fixed and mobile broadband solutions to rural customers at work, home and play across Canada. Today, Xplornet offers voice and data communication services through its unique fibre wireless and satellite network that connects Canadians to what matters.

SOURCE Xplornet Communications Inc.

For further information: For inquiries, please contact: Xplornet Communications Inc., Johanne Senécal, VP, Government Relations and Public Affairs, Johanne.Senecal@corp.xplornet.com