AMP Capital has is providing US$200m (€170m) of mezzanine debt to Vertical Bridge, the largest private owner of telecommunications tower infrastructure in the US.
The investment is being made for AMP Capital Infrastructure Debt Fund III, for which the company raised US$4.1bn in commitments and co-investment capital.
Vertical Bridge was established in 2014 and owns or leases towers, rooftops, billboards, utility attachments and other site location assets, which are then leased to telecommunications carriers and other users of wireless technology. The company currently has more than 55,000 sites nationwide.
Advances under the facility will be used by the company to support organic and inorganic growth during the next two years.
Patrick Trears, principal in the infrastructure debt team at AMP Capital, said: “This transaction represents a key milestone for our business and adds a terrific asset to the portfolio for our investors.
“We see the North American telecommunications infrastructure space as particularly attractive right now, and expect it will be a driver of future growth for our platform.”
Trears added: “We attracted a number of new clients from North America for [the fund], including commitments from some of Canada’s large pension funds.
“Infrastructure debt meets their investment objectives because it offers an attractive yield with capital stability.”