Houlihan Lokey Advises Surf Internet

Houlihan Lokey is pleased to announce that Surf Internet (Surf), a portfolio company of Bain Capital Credit and Post Road Group, has secured an upsized $200 million debt facility from its existing lending group consisting of DigitalBridge Credit, a division of DigitalBridge Group, Canada Pension Plan Investment Board (CPP Investments) through its subsidiary CPPIB Credit Investments Inc. (CPP Credit Investments), as well as a new commitment from Boundary Street Capital (Boundary Street) to support continued network expansion across the Great Lakes region. This transaction increases the existing facility by $100 million and follows a year of continued growth. The transaction closed on December 12, 2023.

Surf, a leading fiber-optic, high-speed internet service provider in the Great Lakes region, has secured an upsized $200 million debt facility from its existing lending group consisting of DigitalBridge Credit, CPP Investments, as well as a new commitment from Boundary Street. Surf secured the incremental debt capital to support and continue the company’s mission to transform broadband in the Great Lakes region by expanding its dense fiber networks into more communities.

The upsizing will double the existing $100 million debt facility put in place in February 2023, which was used to fund the company’s 2023 strategic growth plan. Since February, Surf has maintained significant momentum, announcing in November that it completed its 100,000th passing of fiber-optic connectivity across Indiana, Illinois, and Michigan.

The incremental capital will support Surf’s plan to expand its network while strengthening its multi-gig capabilities. Surf has a strong pipeline of attractive build opportunities to nearly double its fiber passings in 2024.

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

CPPIB is a professional investment management organization that manages the fund in the best interest of the more than 21 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure, and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo, and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2023, the fund totaled C$576 billion.

Boundary Street is a unique private credit investment manager focused on providing flexible capital solutions specifically to lower-middle-market technology and telecommunications businesses and backed by a team of investment professionals with decades of experience investing in these sectors. Boundary Street seeks to invest credit in durable, recurring revenue businesses providing mission-critical services that will drive economic growth, bridge the digital divide, and keep families and businesses connected. The firm’s access to unique, cost-effective, and committed capital positions Boundary Street to support American business while providing attractive risk-adjusted returns for its investors.

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