US internet service provider Omni Fiber has secured an additional $150m (€129m) in debt financing from Stonepeak’s credit arm and Oak Hill Advisors.
The latest financing follows a previous $150m secured by Omni Fiber in July last year from Stonepeak to help accelerate its expansion plan.
Omni Fiber said it has also secured an incremental $50m equity investment from Oak Hill Capital as well as a $10m working capital facility with Republic Bank & Trust.
The incremental financing from Stonepeak Credit and Oak Hill Advisors will fund the firm’s expansion into more communities throughout the Midwest and Texas.
Founded in 2022 by management and Oak Hill, Omni Fiber is a regional fibre internet service provider with operations in over 25 markets in Ohio and Pennsylvania.
The company has invested over $400m in building a fibre network and is on track to reach approximately 340,000 locations by the end of the year.
Darrick Zucco, Omni Fiber’s founding CEO, said: “We are grateful that the additional funds will accelerate our rapid expansion to bring fiber-optic connectivity to those who have been previously underserved. We welcome our new funding partners OHA and Republic Bank.”
Scott Baker, managing partner at Oak Hill Capital, said: “We are proud of our strong operating performance driven by the Omni Fiber management team and very pleased with the company’s continued growth.
“The Oak Hill additional equity investment, together with the incremental financing from debt partners, underscores our belief in the Omni Fiber business model.”
Ryan Roberge, senior managing director at Stonepeak, said: “We continue to be impressed with the Omni Fiber team’s execution of their business plan. We are excited to upsize our investment and continue supporting the team and the high-quality fibre network they are deploying for customers in the Midwest.”
Greg Leveto, portfolio manager and partner at Oak Hill Advisors, said: “Omni Fiber has demonstrated strong execution and a clear commitment to expanding high-quality fibre broadband access in underserved communities. We are pleased to partner with Stonepeak and Oak Hill Capital Partners to support the company’s next phase of growth.”
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