Third Coast Bank's $60 Million Deal with Syntrio Solutions LLC to Propel Fiber Network Expansion

Rhea-AI Summary

Third Coast Bank, a subsidiary of Third Coast Bancshares, Inc. (NASDAQ: TCBX), has successfully completed a New Syndicated Senior Credit Facility for Syntrio Solutions , surpassing the initial $50 million goal to reach $60 million. Syntrio specializes in providing high-speed internet and advanced technology services to underserved communities in North Texas and Southern Oklahoma.

The partnership aims to bridge the digital divide in rural areas, with the funds supporting Syntrio's fiber deployment. This investment aligns with Third Coast's commitment to community development and is expected to spur economic growth by bringing essential high-speed internet services to overlooked regions.

Positive

• Successful completion of a $60 million New Syndicated Senior Credit Facility, exceeding the initial $50 million goal
• Strong interest from potential lenders led to oversubscription of the credit facility
• Partnership with Syntrio Solutions to expand fiber network in underserved areas
• Potential for increased business opportunities and community development through improved internet access

Negative

• None.

Financial Analyst

This $60 million syndicated credit facility for Syntrio Solutions is a significant deal for Third Coast Bank, showcasing its ability to lead and execute large transactions. The oversubscription indicates strong market confidence in both Third Coast and Syntrio. For Third Coast, this deal could potentially:

• Boost interest income and fee-based revenue
• Enhance its reputation in the corporate banking sector
• Diversify its loan portfolio into the growing fiber network industry

However, investors should note that large loans carry inherent risks, especially in a potentially volatile economic environment. The success of this deal will largely depend on Syntrio's ability to execute its expansion plans and generate sufficient cash flow to service the debt.

Tech Expert

Syntrio's expansion into underserved areas of North Texas and Southern Oklahoma is strategically sound. The fiber network market in rural areas presents significant growth opportunities due to:

• Increasing demand for high-speed internet in remote work and education
• Government initiatives supporting rural broadband expansion
• Potential for first-mover advantage in untapped markets

However, challenges may include high infrastructure costs and potential competition from satellite internet providers. The success of this venture will hinge on Syntrio's ability to efficiently deploy the network and attract a substantial customer base in these underserved regions.

Market Research Analyst

This deal reflects a broader trend of increased investment in rural broadband infrastructure. The digital divide between urban and rural areas represents a significant market opportunity. Key points to consider:

• The rural broadband market is projected to grow at a CAGR of 19.2% from 2021 to 2026
• Government initiatives like the Rural Digital Opportunity Fund are providing additional support
• Increased internet access can stimulate local economies, potentially creating a virtuous cycle of growth

For Third Coast, this positions them in a high-growth sector with potential for long-term returns. However, investors should monitor the execution risks and the evolving competitive landscape in this rapidly changing market.

HOUSTON, Sept. 16, 2024 /PRNewswire/ -- Third Coast Bank (the "Bank," "Third Coast," "we," "us," or "our"), a wholly owned subsidiary of Third Coast Bancshares, Inc. (NASDAQ: TCBX), is pleased to announce today the successful completion of a New Syndicated Senior Credit Facility led by the Bank's Corporate Banking team. 

Surpassing the initial $50 million fundraising goal, strong interest from potential lenders led to oversubscription, increasing the senior credit facility to $60 million for Syntrio Solutions LLC.  Syntrio specializes in delivering exceptional high-speed internet and advanced technology services to underserved communities and new markets across North Texas and Southern Oklahoma.

Kirk Petty, CEO of Syntrio Solutions, conveyed his appreciation for the deal, remarking, "We are grateful for Third Coast Bank's trust in our vision. This funding will empower us to implement our plans and create a tangible impact on individuals and businesses. We look forward to a successful collaboration and the positive impact it will bring."

The partnership marks a significant milestone for both Third Coast and Syntrio, as they aim to bridge the digital divide in underserved regions. The allocated funds will support Syntrio's fiber deployment, ensuring high-speed internet access to communities that have long been overlooked by major service providers.

"We are thrilled to support Syntrio Solutions in their mission to deliver fast and reliable internet services to rural areas," said Elizabeth Falco, Executive Vice President of Corporate Banking at Third Coast Bank. "This investment not only aligns with our commitment to community development but also spurs economic growth and opportunities for the businesses and residents in the surrounding areas by bringing them essential services reliant on high-speed internet," Falco concluded.

Third Coast remains committed to investing in digital infrastructure that enhances communities by facilitating global market access, boosting business efficiency, providing educational resources, linking to healthcare services, expanding job prospects, and delivering real-time information in critical situations.

About Syntrio

Syntrio is part of the fabric of North Texas and Southern Oklahoma communities, connecting businesses and households to the rest of the world. At Syntrio, we act as a pillar in the communities we serve, providing dependable internet services that empower residents and businesses. Our mission remains to break down technological barriers and offer our customers the support and service they deserve. For more information, please visit https://syntrio.net.

About Third Coast Bank

Third Coast Bancshares, Inc. (NASDAQ: TCBX) is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.

Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations 
(713) 529-6600
TCBX@dennardlascar.com

View original content:https://www.prnewswire.com/news-releases/third-coast-banks-60-million-deal-with-syntrio-solutions-llc-to-propel-fiber-network-expansion-302248922.html

SOURCE Third Coast Bancshares

FAQ

What is the value of the credit facility Third Coast Bank (TCBX) arranged for Syntrio Solutions ?

Third Coast Bank arranged a $60 million New Syndicated Senior Credit Facility for Syntrio Solutions , exceeding the initial $50 million goal due to strong interest from potential lenders.

What will Syntrio Solutions use the $60 million credit facility from Third Coast Bank (TCBX) for?

Syntrio Solutions will use the $60 million credit facility to support their fiber deployment, ensuring high-speed internet access to underserved communities in North Texas and Southern Oklahoma.

How does the partnership between Third Coast Bank (TCBX) and Syntrio Solutions benefit communities?

The partnership aims to bridge the digital divide in rural areas by providing high-speed internet access, which is expected to spur economic growth, enhance business efficiency, provide educational resources, and improve access to healthcare services in underserved communities.

When did Third Coast Bank (TCBX) announce the completion of the credit facility for Syntrio Solutions ?

Third Coast Bank announced the successful completion of the $60 million New Syndicated Senior Credit Facility for Syntrio Solutions on September 16, 2024.