News
After securing $175.5 million in debt financing, Gateway Fiber has announced they have additional funding to continue expanding their network.
By: Brad Randall, Broadband Communities
The Missouri-based fiber-optic internet provider known as Gateway Fiber is planning to continue their growth in three markets backed by ample capital, according to a recent announcement from the firm.
The announcement followed Gateway Fiber’s closing of a senior secured debt facility, providing additional funding for the company.
The ISP, backed by CBRE Investment Management as an equity sponsor, exceeded its initial fundraising target, according to the Gateway Fiber’s May 24 announcement.
The company was able to secure the debt financing with Texas Capital Bank, acting as an administrative agent, and Texas Capital Securities, as a lead arranger, along with Hancock Whitney Bank, JPMorgan Chase Bank, Sunflower Bank, and Third Coast Bank, all listed as joint lead arrangers.
Chris Surdo, the president of Gateway Fiber, said the company is excited about the developments.
“We can now accelerate our growth plans across multiple markets,” Sudo said.
The company’s announcement listed three “key markets” the company is focusing on: Missouri, Minnesota, and Massachusetts.
A representative from CBRE Investment Management, an investment management firm with $144.0 billion in assets under management as of March, praised Gateway Fiber’s performance.
“The Gateway team has proven their ability to expand into attractive markets and acquire customers with a customer-first approach, validating the platform’s execution capabilities and the market’s demand for fiber,” said Noi Spyratos, who serves as a managing director at CBRE Investment Management.
Gateway Fiber also has a strong balance sheet and good partnerships, according to Betsy Toney, the ISP’s CFO. Toney’s comments were included in Gateway’s announcement.
“We are confident in expanding our platform and taking advantage of opportunities in the FTTH market,” Toney said. “As we grow, we will continue to invest in our capabilities to ensure continued best-in-class quality of service for our customers.”
