Surf Internet has secured $200 million in new funding from the existing lending group consisting of DigitalBridge Credit, Canada Pension Plan Investment Board and a new commitment from Boundary Street Capital.
The service provider secured the new capital to support and expand fiber broadband in the Great Lakes Region by expanding its dense fiber networks into more communities.
This latest funding round will double Surf Internet’s $100 million debt facility that was put in place in February 2023 to fund its growth plan. Since launching that plan, Surf Internet has continued to make progress, announcing in November that it had passed 100,000 locations in Indiana, Illinois, and Michigan.
Dixon, Illinois, became the location for the provider’s 100,000th fiber passing, a significant milestone as the company moves closer to reaching 400,000 passings by 2028. The provider is also progressing in Indiana, where it began construction in four strategically located communities between Warsaw and Columbia City.
"We are pleased to continue our partnership with DigitalBridge Credit and CPP Credit Investments, as well as bringing in our new partner, Boundary Street, through this meaningful debt upsizing,” said Ryan Delack, CFO of Surf Internet. “Our lending partners have been steadfast in their conviction in Surf Internet, alongside our equity partners, Bain Capital and Post Road Group, who remain committed to our growth strategy.”
The incremental capital will support Surf's network expansion while strengthening its multi-gig capabilities. Surf has a strong pipeline of attractive build opportunities to double its fiber passings in 2024.
The transaction closed on December 12, 2023.
