Xplornet Communications Inc. Completes Financing of $1.5 Billion

Xplornet has Refinanced and Expanded its Debt Facilities, Enhancing the Company’s Financial Flexibility to Accelerate its Fibre-to-the-Home and 5G Wireless Broadband Plan

WOODSTOCK, NB – On October 1, 2021, Xplornet Communications Inc., Canada’s largest rural-focused broadband provider, closed on a term loan financing transaction that encompassed a seven year first-lien facility of US $995 million and an eight year second-lien facility of US $200 million, totaling approximately CDN $1.5 Billion. In addition to the two term loans, Xplornet will have a C$160 million revolver due 2026, that is undrawn at close.

Proceeds of this financing will be used to finance the successful acquisition of 3500 MHz spectrum in the recent Canadian auction, refinance the company's existing first-lien term loan, and for general corporate purposes.

By taking advantage of low borrowing costs and actively managing its medium-term maturity profile, Xplornet has enhanced its ability to accelerate the rollout of its fibre-to-the-home and 5G wireless broadband network. This step is consistent with Xplornet’s strategy to proactively invest in next generation broadband technology and accelerating its deployment plans to bring fast, reliable and affordable Internet service to rural Canadians.

“We are pleased with the outcome of this financing process. It supports our fibre-to-the-home and 5G wireless broadband expansion plans for the benefit of our rural customers in Canada,” said Kurban Khanbhai, Chief Financial Officer of Xplornet Communications Inc.

Barclays lead the deal and the arranger group included BMO Capital Markets, Credit Suisse, Natixis Canada and Morgan Stanley.