Bluebird Network – a communications infrastructure provider and operator of more than 11,000 miles of fiber and two data centers – recently announced that it has received $285 million of five-year Senior Secured Credit Facilities. The proceeds from the Credit Facilities were used to refinance Bluebird’s existing indebtedness and will fund ongoing capital expenditures, including network upgrades, expansion into new markets, and an awarded Middle Mile grant build. TD Securities acted as the Lead Left Arranger on the financing and is the Administrative Agent for the Credit Facilities.
Even though interest rates remain high, tightened and scrupulous lending by financial institutions has put new sights on the global digital infrastructure market. And the confidence in Bluebird’s business model is a testament to the company’s ability to execute on its plans. With an existing rise in digital infrastructure needs and the expected meteoric rise in bandwidth demand driven by Artificial Intelligence, the value of the global AI infrastructure market is projected to reach $309.4 billion by 2031 (Allied Market Research).
In the past year, Bluebird has built over 360 new route miles of fiber and expanded into several additional markets throughout Missouri, Illinois, and Iowa. And this new financing provides Bluebird with the capital to execute development plans in accordance with the company’s strategic vision to have a fiber presence in 80 percent of cities with a population of 10,000 people or more across its 11-state footprint in the Midwest.
Beyond market densification projects, in 2024, Bluebird is planning more long-haul fiber routes and recently completed an underground river crossing in St. Louis, traversing the Mississippi River and adding a new, diverse route to its network offerings. In 2023, the company was awarded a grant as part of the U.S. Department of Commerce’s Enabling Middle Mile Broadband Infrastructure Program. And the grant will be used to build a highly desirable route connecting St. Louis and Tulsa, which is expected to be completed over the next four years.
KEY QUOTES:
“We’re thrilled to announce the closing of this refinancing. It’s a point of pride that we’re viewed by lenders as a trustworthy company to work with.”
“The upsized credit facilities will enable us to execute goals we’ve laid out for 2024 and beyond. This includes growing our fiber network and continuing to take advantage of strategic opportunities as they may arise.”
— Michael Morey, President and CEO of Bluebird Network
