CityFibre shareholders to inject £500m in refinancing deal

Shareholders in CityFibre Holdings are in talks to inject a whole bunch of tens of millions of kilos into the UK’s largest unbiased broadband infrastructure community as a part of a refinancing that would supply it with a contemporary warchest for acquisitions.

Sky Information has learnt that fairness buyers within the firm, which embrace the Abu Dhabi sovereign wealth fund Mubadala, are negotiating over an injection value within the area of £500m, in accordance with banking sources.

A deal, which could possibly be finalised within the coming weeks, would type a part of a wider stability sheet strengthening which would come with a considerable new debt-raise, the sources added.

A syndicate of CityFibre’s lenders, mentioned to be led by NatWest Group, this week appointed advisers from Lazard to help them throughout talks with the corporate.

The corporate’s shareholders additionally embrace West Avenue Infrastructure Companions, a fund managed by Goldman Sachs; Antin Infrastructure Companions; and Interogo Holding.

One banker mentioned CityFibre was anticipated to make use of its strengthened warchest to launch additional takeovers of smaller altnets, having purchased Lit Fibre almost a yr in the past.

CityFibre spokesperson: “We’re financing the enterprise from a place of power, with the complete backing of our shareholders and buyers.

“We sit up for additional growth as we launch Sky throughout our nationwide footprint later this yr.”

The corporate declined to touch upon the dimensions of the potential fairness injection from shareholders.