Intrepid Fiber Networks Raises $290 Million to Fund its Commitment to Provide Nationwide Wholesale Open Access Fiber Broadband Service

Rhea-AI Summary

Intrepid Fiber Networks has secured $290 million in debt financing to fund its nationwide wholesale open access fiber broadband service. The company, supported by Brookfield, will use the proceeds for inaugural deployments in Colorado and Minnesota, covering over 250,000 premises. Société Générale acted as the Structuring and Coordinating Advisor for the financing.

CEO Jack Waters emphasized that this funding accelerates their growth and build plan. Intrepid aims to deliver future-proof fiber networks with symmetrical gigabit speeds, providing end users with more options in choosing their preferred Internet Service Provider. The company is also evaluating new market deployments to expand its open access network across the nation.

Positive

• Secured $290 million in debt financing
• Expanding to cover over 250,000 premises in Colorado and Minnesota
• Accelerating growth and build plan
• Evaluating new market deployments for nationwide expansion

Negative

• None.

Insights

Financial Analyst

Intrepid Fiber Networks securing $290 million in debt financing is significant for several reasons. First, the substantial amount of funding indicates strong confidence from financial institutions in Intrepid’s business model and future prospects. This financing will facilitate the company's expansion into new markets, specifically Colorado and Minnesota and enable them to reach over 250,000 premises.

From an investor’s perspective, this funding can potentially enhance the company’s revenue streams by increasing their subscriber base and market penetration. However, taking on significant debt also entails risks. The company will need to ensure that the revenue generated from these new deployments outpaces the cost of servicing the debt to maintain financial health.

Overall, this development can be seen as a positive move for the company's growth trajectory but requires careful management to balance expansion with financial stability.

Market Research Analyst

The announcement by Intrepid Fiber Networks to utilize the debt financing for deploying fiber broadband in Colorado and Minnesota aligns well with current market trends. The demand for high-speed, reliable internet is ever-increasing, especially in light of remote work trends and the digital economy. By focusing on a wholesale open access model, Intrepid is positioning itself uniquely in the market. This model allows multiple internet service providers to leverage the same infrastructure, potentially increasing competition and consumer choice.

For retail investors, this approach can be advantageous as it not only diversifies Intrepid's customer base but also aligns with regulatory trends promoting open access to foster competition. The symmetrical gigabit speed offering further places Intrepid at a competitive advantage, meeting high consumer expectations for internet speed and reliability.

However, market deployment and adoption rates will be key indicators to watch for gauging the ultimate success of these initiatives.

BROOMFIELD, Colo.--(BUSINESS WIRE)-- Intrepid Fiber Networks (“Intrepid”), a leading fiber-to-the-premises provider supported by Brookfield, announced today that it has secured $290 million in debt financing with Société Générale as Structuring and Coordinating Advisor. The proceeds will support Intrepid’s inaugural deployments in Colorado and Minnesota to over 250,000 premises.

“Securing this new credit facility accelerates our growth across the entire build plan. We have already achieved tremendous success constructing our networks and onboarding subscribers through our partners,” said Jack Waters, Chief Executive Officer of Intrepid. “This exciting step forward reinforces our commitment to delivering future-proof fiber networks that provide symmetrical gigabit speed to meet our end users’ broadband needs, while providing customers more options in choosing their preferred Internet Service Provider.”

Intrepid expects continued growth across its announced markets and is evaluating new market deployments, with a vision to bring an open access network to premises across the nation.

About Intrepid:

Founded in 2021, Intrepid Fiber is a pioneering Fiber-to-the-Premises platform championing a Wholesale Open Access Model. Intrepid’s mission is to deliver world-class fiber to communities throughout the United States and meet the broadband demands of the future.

To learn more, please visit intrepidfiber.com.

About Brookfield:

Brookfield Asset Management (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with over $925 billion of assets under management. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield Infrastructure

Brookfield operates Brookfield Infrastructure Partners (NYSE: BIP, TSX: BIP), a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across North and South America, Asia Pacific and Europe.

Forward-Looking Statements

Certain statements contained herein or made by management constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations about our plans and future performance and speak only as of the date of this press release. We do not undertake to update these statements. Our expectations (or the underlying assumptions) may change or not be realized, and you should not unduly rely on forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718991830/en/

Shane Peverill

VP, Business Development

shane.peverill@intrepidfiber.com

Source: Intrepid Fiber Networks

FAQ

How much funding did Intrepid Fiber Networks raise in its recent financing round?

Intrepid Fiber Networks raised $290 million in debt financing to fund its nationwide wholesale open access fiber broadband service.

Which states will Intrepid Fiber Networks initially deploy its services in?

Intrepid Fiber Networks will initially deploy its services in Colorado and Minnesota, covering over 250,000 premises.

What is the main goal of Intrepid Fiber Networks' expansion?

Intrepid Fiber Networks aims to deliver future-proof fiber networks with symmetrical gigabit speeds and provide customers with more options in choosing their preferred Internet Service Provider.

Who provided the structuring and coordinating advisory services for Intrepid Fiber Networks' financing?

Société Générale acted as the Structuring and Coordinating Advisor for Intrepid Fiber Networks' $290 million debt financing.