Fiera Infrastructure acquired an equity interest in Conterra Ultra Broadband Holdings, according to a 1 May press release.
The equity stake was acquired from Conterra’s majority owner Court Square Capital Partners and certain members of Conterra’s management team.
The investment was made through Fiera’s open-ended infrastructure fund. The only other telecom investment in the Canadian fund’s portfolio was made last month when it acquired a Canadian government data center, which was procured as a public-private partnership, according to Inframation Deals.
Court Square engaged Evercore Partners and TD Securities last year to run an auction process for the Charlotte-based owner of 11,000 miles of fiber. The business was generating USD 50m in run-rate EBITDA at the time.
One infrastructure fund was in advanced talks to acquire Conterra, but was unable to reach a deal earlier this year.
Conterra then refinanced its debt load with USD 365m in first and second lien facilities with TD, which lead to the equity investment with Fiera.
The debt, which received a B3 credit rating from Moody’s, is comprised of a USD 250m TLB due 2026, USD 60m revolver due 2027 and a USD 65m second lien term loan due 2027.
Dechert LLP also served as legal counsel to Court Square and Conterra on the deal. Morgan Lewis served as regulatory counsel. Advising Fiera was Weil Gotshal & Manges, Harris Wiltshire & Grannis and Arnold & Porter.