Business fiber network service provider Everstream says it has closed $342.5 million in debt financing from nine banks. Webster Bank served as lead arranger, with the assistance of joint lead arrangers CoBank, Regions Financial Corp., Fifth Third Bank, and TD Bank. Everstream says it plans to use the funds to fuel its 2020 growth plans, which include reaching five new markets and densifying existing markets in the U.S. Midwest.
Everstream’s existing footprint includes more than 13,000 route miles of fiber, through which it offers connectivity of up to 100 Gbps to business customers. The company launched in several new markets in 2019 and made acquisitions this year (see, for example, “Everstream connects Columbus to business fiber network” and “Everstream to buy Rocket Fiber”) and plans to continue to grow its addressable customer base this year. Everstream says it expects its infrastructure to reach 15,000 miles of fiber with more than 3,000 on-net locations in 12 markets throughout the Midwest by the end of this year (see "Everstream announces new market targets, closes LightBound acquisition").
“The original facility that we structured in 2015 has led to a strong and mutually beneficial partnership with Everstream,” said Matthew Kane, managing director of Webster Bank’s Technology and Infrastructure Group. “Our goal at Webster Bank is simple: finance recurring businesses with high retention rates backing proven sponsors and management teams. Everstream has checked all of the boxes and more. We are excited to continue our relationship while supporting their explosive growth.”
“We are extremely fortunate to have such a great group of banks support our growth plans during these difficult times,” said Everstream President and CEO Brett Lindsey. “Our team’s history of doing what we say we will do provided the confidence to significantly increase our debt facility.”
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