Surf Internet Secures $175 Million in New Equity for Expansion
Deal News | Feb 21, 2025 | CDPQ
Surf Internet has announced a significant funding milestone as it celebrates 25 years of service in the connectivity industry. The company has secured $175 million in new equity funding led by Macquarie Capital, with contributions from existing investors Bain Capital and Post Road Group. In addition, Surf Internet has expanded its debt facility by obtaining an upsized $300 million commitment, supported by CDPQ and other financial partners, including DigitalBridge Credit, Boundary Street Capital, and Liberty Mutual Investments. This financing will empower Surf to enhance its fiber-optic network and increase its reach to 275,000 fiber passings by 2025. The firm's long-term financial stability is fortified by this infusion, allowing further deployment of high-speed internet connectivity across underserved communities in the Great Lakes region. Financial advisory services for both transactions were provided by Houlihan Lokey, while various legal advisors were involved from Kirkland & Ellis LLP, Goodwin Proctor LLP, and White & Case LLP.
Sectors
- Telecommunications
- Finance
- Infrastructure
Geography
- United States – Surf Internet's network expansion and operations are primarily focused in the Great Lakes region of the United States.
- Canada – CDPQ, one of the key investors in the debt facility, is based in Canada, linking the geographical scope to Canada.
Industry
- Telecommunications – The article discusses Surf Internet's initiatives to expand its fiber-optic broadband services, a core aspect of the telecommunications industry.
- Finance – The involvement of equity and debt financing from various investment firms makes Finance another relevant industry classification.
- Infrastructure – The focus on expanding broadband infrastructure across the Great Lakes region connects the article to the Infrastructure industry.
Financials
- $175 million – The amount raised in new equity funding led by Macquarie Capital.
- $300 million – The upsized debt facility secured for Surf Internet's expansion.
- 275,000 fiber passings – Surf's target expansion goal by 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Surf Internet | Target Company | Company | A company specializing in fiber-optic broadband services, expanding its network across the Great Lakes region. |
| Macquarie Capital | Equity Investor | Company | Led the new equity investment in Surf Internet. |
| Bain Capital | Equity Investor | Company | An existing investor participating in the new equity round. |
| Post Road Group | Equity Investor | Company | An existing investor in Surf Internet. |
| DigitalBridge Credit | Debt Lead | Company | Led the upsized debt facility for Surf Internet. |
| CDPQ | Debt Investor | Company | A new commitment provider to the upsized debt facility. |
| Boundary Street Capital | Debt Investor | Company | Participated in the debt facility for Surf Internet. |
| Liberty Mutual Investments | Debt Investor | Company | Participated in the debt facility for Surf Internet. |
| Canada Pension Plan Investment Board (CPP Investments) | Existing Lender | Company | Provided prior lending commitments to the original debt facility. |
| Houlihan Lokey | Financial Advisor | Company | Served as exclusive financial advisor and placement agent to Surf Internet. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided legal counsel to Surf Internet. |
| Goodwin Proctor LLP | Legal Advisor | Company | Provided legal counsel to Macquarie Capital. |
| White & Case LLP | Legal Advisor | Company | Provided legal counsel to DigitalBridge Credit. |