Press Release
Surf Internet has announced that it has secured an upsized $200 million debt facility from the existing lending group consisting of DigitalBridge Credit, a division of DigitalBridge Group, Inc., Canada Pension Plan Investment Board (“CPP Investments”) through its subsidiary CPPIB Credit Investments Inc. (“CPP Credit Investments”), as well as a new commitment from Boundary Street Capital (“Boundary Street”). Surf Internet secured the incremental debt capital to support and continue the company’s mission to transform broadband in the Great Lakes Region by expanding its dense fiber networks into more communities.
The upsizing will double the existing $100 million debt facility put in place in February 2023, which was used to fund the company’s 2023 strategic growth plan. Since February, Surf has maintained significant momentum, announcing in November that they had completed their 100,000 passings of fiber-optic connectivity across Indiana, Illinois, and Michigan.
“We are thrilled to enter the next phase of accelerated expansion with continued support from our highly experienced digital infrastructure investment partners who all share our vision for building Surf into one of the leading fiber-to-the-premise (FTTP) providers in the country,” said Gene Crusie, CEO of Surf Internet.
“We are pleased to continue our partnership with DigitalBridge Credit and CPP Credit Investments, as well as bringing in our new partner, Boundary Street, through this meaningful debt upsizing. Our lending partners have been steadfast in their conviction in Surf Internet, alongside our equity partners, Bain Capital and Post Road Group, who remain committed to our growth strategy,” added Ryan Delack, CFO of Surf Internet.
The incremental capital will support Surf’s plan to expand its network while strengthening its multigig capabilities. Surf has a strong pipeline of attractive build opportunities to nearly double its fiber passings in 2024.
“We are proud to partner with CPP Credit Investments and Boundary Street in accelerating the deployment of fiber-to-the-premise buildouts, driven by a strong demand for connectivity,” said Chris Moon, Managing Director at DigitalBridge Credit. “We are excited to contribute to this next phase of growth and value creation, continuing our support for Gene, Ryan, and the entire team at Surf Internet.”
The transaction closed on December 12, 2023. Houlihan Lokey served as exclusive financial advisor and placement agent to Surf Internet and Kirkland & Ellis LLP served as legal counsel. White & Case LLP served as legal counsel to DigitalBridge Credit as the lead lender.
