DC Advisory advises Conterra Networks on its refinancing

Background

• Conterra Networks (Conterra) is an independent fiber operator delivering high-bandwidth connectivity services to underserved markets in the south-east and south-central regions in the US
• Conterra provides essential digital services to customers in the enterprise, carrier, education, government, and data center sectors via its c. 14,000 mile route fiber network
• Its majority shareholders are global infrastructure investors APG Group NV (APG) and Fiera Infrastructure Inc (Fiera)

Process

• DC Advisory was appointed as financial advisor by Conterra to provide debt advice on the refinancing and restructuring of its existing Term Loan B facilities
• DC Advisory ran a comprehensive refinancing process, targeting new banks and institutional investors with the aim of establishing a long-term financing platform to support Conterra’s future growth
• The refinancing included a number of detailed workstreams covering financial modelling, external ratings assessment, business planning, debt structuring, assisting with the due diligence process and assisting with negotiation of the finance documentation

Outcome

• DC Advisory successfully delivered a flexible debt structure for Conterra, provided by a club of banks and institutions, the key highlights of which include:
  • An investment grade rated multi-creditor OpCo financing, which includes term facilities of 7 to 12 years and committed revolving debt facilities to support Conterra’s growth ambitions
  • A MidCo term facility was also included to optimize Conterra’s capital structure
• The successful outcome demonstrates DC Advisory’s expertise in repositioning assets into the Infrastructure market, accessing alternative pools of liquidity and depth of experience in the fiber sector