US fibre broadband provider Gateway Fiber has raised $578m (€519m) through a two-part debt financing package to refinance existing facilities and fund network expansion across six US states.
The CBRE Investment Management-backed company secured $333m via its inaugural asset-backed securitisation (ABS) alongside a $245m development financing facility, attracting interest from institutional bond investors and commercial banks.
Gateway Fiber said the ABS is backed by a diversified portfolio of high-quality operating fibre and fixed wireless assets, together with the associated customer contracts and recurring revenues. The development facility will fund the continued construction and expansion of its network.
“Proceeds from both transactions will be used to refinance existing debt, fund required transaction reserves and expenses, and provide additional liquidity to support Gateway’s ongoing growth initiatives,” the company added.
Craig Ceranna, CFO of Gateway Fiber, said: “Securing this financing is a pivotal step forward in our mission of helping communities thrive through reliable, high-speed internet experiences.
“This capital provides the runway to accelerate our expansion, allowing for continued delivery of next-level connectivity for additional residents and businesses across the nation, all while maintaining a disciplined approach to our long-term growth.”
Chris Surdo, CEO of Gateway Fiber, said: “The successful close of this financing is a clear demonstration of confidence in Gateway’s operational strength and market momentum. This transaction establishes a durable foundation for continued expansion.
“With services already active across six states, this capital allows us to accelerate network construction and bring our world-class fiber infrastructure to even more underserved communities. We’re grateful for the confidence CBRE Investment Management and our financing partners have placed in our team and long-term vision.”
CBRE Investment Management originally acquired Missouri-based Gateway Fiber in January 2023 from Crosstimbers Capital for an undisclosed sum on behalf of one of its infrastructure funds.
Founded in 2019, the fibre-to-the-home developer and operator initially covered 12 cities across Missouri, expanding CBRE IM’s US digital infrastructure portfolio alongside its existing middle-mile fibre operator WANRack.
To read the latest IPE Real Assets magazine click here.
.jpg)
