EXA secures EUR €1.3 billion to drive global fibre expansion
EXA Infrastructure has secured over EUR €1.3 billion in new financing to support its network growth and merger and acquisition plans across Europe and North America.
Expansion plans
The new seven-year financing facility is backed by a group of major international lenders and is aimed at enabling EXA Infrastructure to continue its investment in expanding its fibre infrastructure and subsea cable systems. The focus spans Europe, America, and the Middle East, with the aim to address increased demand for digital connectivity and capacity.
This funding follows EXA Infrastructure's acquisition of Aqua Comms earlier in the year, and marks another step in the company's ongoing expansion strategy. Recent projects highlighted by EXA Infrastructure include the creation of the largest new fibre route in central Europe, connecting cities such as London, Frankfurt, Amsterdam, and Brussels. In addition, the company has completed the deployment of the first new subsea cable across the Red Sea in 25 years.
Strategic focus
Chief Executive Officer Jim Fagan emphasised the significance of the refinancing for the business and its customers:
"This move gives us an unrivalled ability to continue investing in our network, at a time when our customers need growing amounts of capacity across more routes, to handle an evolving set of applications and demands. Our recent investments have already shown our strategic focus, and with this refinancing, EXA Infrastructure is firmly positioned to lead in network and digital infrastructure throughout Europe and across the Atlantic."
The network operator has announced a number of developments throughout the year, including the signing of binding agreements to acquire Aqua Comms, a series of substantial fibre backbone deployments in Central Europe, and the completion of the first new subsea cable in the North Sea in a quarter of a century.
Financing partners
The lenders involved in the refinancing include several prominent financial institutions and global investors. The list includes MUFG Bank, DNB, Banco Santander, Landesbank Baden-Wuerttemberg, Lloyds Bank, NORD/LB, Goldman Sachs International Bank, NatWest, Kookmin Bank London Branch, Woori Bank London Branch, NIBC Bank, and funds managed by Allianz Global Investors and Edmond de Rothschild Asset Management.
Rothschild & Co is acting as debt advisor to EXA Infrastructure for the refinancing, with Latham and Watkins providing legal counsel to the company. Simpson Thacher and Bartlett is acting as legal advisor to the group of lenders on the transaction.
Market confidence
Kate Hennessy, Chief Financial Officer at EXA Infrastructure, commented on the level of support from the lender group:
"We're proud to have the support of such high-calibre lenders and institutions who understand not only our business but also the wider digital infrastructure landscape. Such strong demand for the facility underscores market confidence in our strategy and reaffirms our desire to pursue our next stage of growth with conviction."
The infusion of funds is set to finance continued infrastructure rollout, enabling organisations and service providers to meet growing demand for connectivity driven by digital transformation and the increasing adoption of data-intensive services across industries.
EXA Infrastructure owns 155,000 kilometres of fibre network across 37 countries, including six transatlantic cables linking Europe and North America, and claims to operate the lowest latency connectivity between these continents.
The company's future investments are expected to further develop links between Europe and other global markets, including the Middle East, in line with customer requirements for robust, high-capacity and reliable infrastructure.
