German fibre-to-the-home (FTTH) provider Deutsche Glasfaser has confirmed a €1.2bn financing package by shareholders EQT and Ontario Municipal Employees Retirement System (OMERS), alongside a consortium of lenders.
Following media reports earlier this month regarding the debt financing, Deutsche Glasfaser said the shareholders are providing the company with “significant equity” injection, complemented by a “significant contribution” of new debt capital from its financing partners. Additionally, the firm will restructure existing debt on long-term terms.
Andreas Pfisterer, CEO Deutsche Glasfaser, said: “The agreement is an important milestone and very good news for our employees and partners. It creates continuity as well as planning and financing security. This means that we are fully financed and clearly stand out from the competition.
“I would like to thank our shareholders and financing partners for their trust. On this basis, DG will complete the planned network expansion and at the same time drive forward the ongoing transformation from a strongly construction-focused company to a customer-oriented broadband provider.”
A spokesperson for EQT and OMERS said: “We are pleased that a plan to create a solid capital structure for Deutsche Glasfaser has been achieved. This recapitalisation will support the company’s growth and ongoing fibre rollout for the benefit of customers and communities.
“We thank everyone involved for their commitment and look forward to continuing to support the management in the next phase of growth.”
In early 2020, EQT’s global infrastructure fund and OMERS Infrastructure acquired Deutsche Glasfaser from KKR Infrastructure and Reggeborgh. The new owners merged the business with EQT Infrastructure IV portfolio company Inexio, the German fibre-optic broadband provider acquired the previous year.
Following the merger, EQT Infrastructure held a 51% stake in the combined group, with OMERS owning the remaining 49%.
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