Conterra’s refinancing of $580 million of debt was awarded Refinancing of the Year in North America, with judges impressed that the first-of-its-kind rating for a US fiber operator.

Charlotte, North Carolina-based Conterra, which is owned by affiliates of each of APG and Fiera Infrastructure, refinanced and restructured its existing Term Loan B facilities.

The refinanced debt was used to optimize Conterra's capital structure, and provide additional capacity to support the company’s growth.

The company is securing investment-grade-rated senior facilities, comprised of a term loan and revolving credit facilities from:

• CIBC
• Export Development Canada
• National Bank of Canada
• NordLB
• SMBC

Senior notes are being provided by MetLife Investment Management and IFM. Nomura is providing a structurally subordinated midco term facility.

The submission said: “Conterra is now in an excellent position to access additional funding to support its exciting growth plans and provide underserved markets in the US with access to full-fiber connectivity.”

The company has a 14,000-route mile fibre network of middle and last-mile fiber-based services to telecoms carriers, school districts, and commercial customers across 14 states in the Southeast, South Central and Western US. Conterra focuses on tier 3-5 cities and towns, many of which have been overlooked by large telecommunication companies, given the smaller population sizes and sparsity of customer connections in those areas. 

The submission said: “The refinancing included several detailed workstreams covering financial modelling, external ratings assessment, business planning, debt structuring, assisting with the due diligence process and assisting with negotiation of the finance documentation. 

“Key highlights include an investment grade rated multi-creditor OpCo financing, which includes term facilities of 7 to 12 years and committed revolving debt facilities to support Conterra’s growth ambitions. Additionally, a MidCo term facility was also included to optimize Conterra’s capital structure.”

The submission added: “Conterra secured a first-of-its-kind investment grade private rating for a US fiber operator, taking it out of the Term Loan B market and placing it firmly within the infrastructure sector. With access to a revolving capex facility to meet its capital needs and the stability of long-term debt, the new capital structure will support the company in its densification strategy to continue providing essential infrastructure to underserved markets.”

Advisers to Conterra:

• DC Advisory – financial 
• TD Securities – financial 
• Latham & Watkins – legal

Lenders counsel:

• White & Case – legal