CityFibre places debt package of GBP 1.12bn

CityFibre has put in place a debt package of GBP 1.12 billion from seven major financial institutions including ABN AMRO, Deutsche Bank, Lloyds Bank plc, Natixis, NatWest, Santander and Société Générale£.

Proceeds from this infrastructure debt package will be used to fund the first part of CityFibre´s GBP 2.5 billion investment plan, which will see it roll-out full fibre to five million homes, a third of the Government´s target of 15 million homes by 2025.

The debt package will be used to fund the deployment of the first two million homes of CityFibre´s five million homes target and will expand CityFibre´s existing full fibre networks in 37 previously announced towns and cities nationwide.

As well as connecting homes, CityFibre´s full fibre network is designed to serve all businesses and public sector sites, provide a superior backbone for mobile operators´ existing locations, enable the rollout of 5G and Internet-of-Things technology and offer transformative, future-proofed connectivity to those joining the Gigabit City Club.

The debt package includes a GBP 775 million seven-year capex facility and GBP 45 million revolving overdraft and working-capital facility. It also includes a GBP 300 million accordion facility. Rothschild & Co acted as financial adviser to CityFibre and Latham & Watkins as legal adviser.

CityFibre is the UK´s alternative provider of wholesale full fibre network infrastructure. With existing full fibre infrastructure in towns and cities throughout the UK, it provides a portfolio of active and dark fibre services to its customers which include service integrators, enterprise and consumer service providers, local authorities and mobile operators. CityFibre is committed to bring gigabit capable full fibre broadband to up to five million UK homes and businesses. CityFibre´s strategy is focused on cities and towns outside London. The company is jointly controlled by Antin Infrastructure Partners and West Street Infrastructure Partners (a fund managed by Goldman Sachs).