WOODSTOCK, NB – Rural broadband provider Xplornet Communications Inc. announced today it has enhanced its financial flexibility by refinancing and expanding its debt facilities in order to accelerate its plans for fibre-to-the-home and 5G wireless broadband.
On Oct. 1, the company “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, totalling approximately CDN $1.5 Billion,” a press release says.
“In addition to the two term loans, Xplornet will have a C$160 million revolver due 2026, that is undrawn at close.”
The proceeds of the financing will be used, in part, to fund Xplornet’s acquisition of 263 licences in the recent 3500 MHz spectrum auction.
“Barclays lead the deal and the arranger group included BMO Capital Markets, Credit Suisse, Natixis Canada and Morgan Stanley,” the press release says.
“We are pleased with the outcome of this financing process,” Kurban Khanbhai, CFO of Xplornet, said in the release.
“It supports our fibre-to-the-home and 5G wireless broadband expansion plans for the benefit of our rural customers in Canada.”
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