Houlihan Lokey Advises Surf Internet

Houlihan Lokey is pleased to announce that Surf Internet, a portfolio company of Bain Capital and Post Road Group, has raised $100 million of committed debt financing from DigitalBridge Credit, a division of DigitalBridge Group (NYSE:DBRG), to support continued network expansion across the Great Lakes region. The transaction closed on February 3, 2023.

Surf Internet, a leading fiber-optic, high-speed internet service provider in the Great Lakes region, announced that it has raised $100 million of debt financing from DigitalBridge Credit. Surf Internet secured the new debt capital to support the company’s mission to transform broadband in the Great Lakes region by expanding its dense fiber networks into more communities. The debt raise comes alongside a significant equity investment from the company’s existing sponsors, Bain Capital and Post Road Group, as well as the management team.

Surf Internet provides predominantly fiber-based, high-speed broadband to residential subscribers, businesses, educational institutions, and municipalities across Indiana, Illinois, and Michigan. The company was acquired by Bain Capital and Post Road Group in 2021 to capitalize on attractive growth opportunities in the region while strengthening its commitments to bridge the digital divide across the Midwest. Over the past two years, Surf Internet has successfully bolstered its executive leadership team, completed an extensive rebranding, and secured grants with local municipalities to expand broadband access in the Great Lakes region. Surf Internet now serves more than 27,000 customers across 45 markets in Indiana, Illinois, and Michigan. The company offers residential speeds up to 10 gigs and has increased its fiber subscriber base sevenfold since the acquisition.

The new funding will support Surf Internet’s plan to expand its network into more than 60 markets while strengthening its multi-gig capabilities. Surf Internet is on pace to surpass 100,000 fiber passings in 2023 and has a pipeline of attractive build opportunities to roughly double its fiber passings through 2024.

DigitalBridge Group is a leading global digital infrastructure investment firm. With a heritage of more than 25 years investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages a $48 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, DigitalBridge has key offices in New York, Los Angeles, London, and Singapore.

Houlihan Lokey served as the exclusive financial advisor and placement agent to Surf Internet.