Phoenix Tower International (PTI) has closed a HoldCo financing facility to continue its international expansion. The transaction consists of three tranches at close that may be further increased through an accordion feature up to a total of EUR 775 million (approx. $940 million) to fund future growth. Caisse de dépôt et placement du Québec (CDPQ), a global investment group, and AMP Capital, a global investment manager, provided the financing.
The multi-jurisdiction facility underpins PTI’s focus providing infrastructure assets worldwide. PTI will use facility to fund its recent growth in Europe and provides additional capacity to support growth in existing and new markets, according to information provided by the company.
“This financing provides PTI with the flexibility to continue to grow our business across all markets with incremental financing available at our disposal, and will allow us to deliver for our customers, counterparties and business partners in an expedited manner with a strong lender group,” said Dagan Kasavana, CEO of PTI, in a prepared statement. “CDPQ and AMP Capital’s financing will support PTI as we continue to construct and invest in digital infrastructure across all markets and lead the necessary 4G and 5G build-outs on behalf of our customers and the populations we serve around the world,”.
Thomas Senecal of Blackstone Tactical Opportunities said that PTI’s focus on offering value-add infrastructure solutions to carrier customers is representative of Blackstone’s thematic focus on digital infrastructure and wireless connectivity. “We are proud to partner with CDPQ, a long-term partner to Blackstone, and AMP Capital to support our expansion across the US, Europe, and other growth markets,” he said.
Marc Cormier, executive vice president and head of fixed income at CDPQ, said that the financing in PTI builds on CDPQ’s previous experience to contribute to the expansion of digital infrastructure globally, alongside recognized industry leaders in the fast-growing sector. “By providing a customized and flexible financing solution to PTI, CDPQ is supporting a high-quality operator well positioned to seize opportunities in attractive markets that are experiencing a rising demand for connectivity,” he said.
Patrick Trears, global head of infrastructure debt at AMP Capital, said that PTI is one of the leading global owners and operators of tower infrastructure and that AMP Capital is pleased to have collaborated with PTI and CDPQ to implement a highly bespoke financing to support their growth ambitions.
“With the demand for telecommunication infrastructure set to continue to increase, we believe that PTI is well-placed to assist in meeting this demand and capitalize on associated growth opportunities across their markets,” Trears said. “Telecommunications infrastructure remains a key sector for our infrastructure debt strategy, and with this transaction we are pleased to have added another high-quality investment for our investors around the world.”
PTI was represented by Locke Lord. CDPQ and AMP Capital were represented by Norton Rose Fulbright. Terms of the transaction remain confidential among the parties.
PTI owns and operates over 12,500 towers, 986 km of fiber and markets over 80,000 other wireless infrastructure and related sites located in 16 countries throughout Europe, the United States, Latin America and the Caribbean.
PTI was founded in 2013 with a mission to be a premier site provider to wireless operators across the Americas in high-growth markets. PTI’s investors include funds managed by Blackstone Tactical Opportunities and John Hancock, as well as various members of the management team.
CDPQ invests to generate sustainable returns over the long term. As a global investment group managing funds for public retirement and insurance plans, CDPQ works alongside its partners to build enterprises that drive performance and progress. The company is active in financial markets, private equity, infrastructure, real estate and private debt. As of Dec. 31, 2020, CDPQ’s net assets were CAD $365.5 billion.
AMP Capital is a global investment manager with a heritage and strength in real estate and infrastructure, and experience in fixed income, equities and multi-asset solutions. AMP Capital has been investing in infrastructure since 1988 and has $22 billion infrastructure equity and debt assets under management as of Dec. 31, 2020. AMP Capital has been ranked in the top 10 infrastructure managers globally, based on total capital raised. AMP Capital is owned by AMP Limited, which was established in 1849, and is one of Australia’s largest retail and corporate pension providers.
Source: Phoenix Tower International