Accolade for XpFibre: Achievement in the Realm of Fibre Technology

In a groundbreaking move, XpFibre, a leading provider of Fibre to the Home (FttH) infrastructure networks, has successfully refinanced its operations, marking a significant milestone in the European telecoms industry. The refinancing, which was recognised as the "Europe Telecoms Deal of the Year" by PFI and the "Digital Infrastructure Deal of the Year - Europe" by IJGlobal, has set a new benchmark for financing in the fibre sector.

XpFibre, with a de-facto exclusive footprint of 7.2 million homes across France, owns 60% of its network outright, while the remaining 40% is operated through long-term concessions. The refinancing structure, which paves the way for the future financing needs of XpFibre, includes a €2.85bn term loan A, an €875m capex facility, a €350m debt service reserve facility, and a €200m working capital facility.

The refinancing was set up as a platform financing, reflecting the mature, brownfield nature of the company. It also demonstrated the growing demand for robust digital connectivity across the continent. The bridge-to-private placement and the closing of an inaugural €1.2 billion US and European Private Placement (USPP) allowed for a broader pool of liquidity and better financial terms for the client.

Our website CIB served as one of the six Mandated Lead Arranger Underwriter, Bookrunner, Placement Agent, and Hedging Bank, playing a significant role in the transaction. CIB also acted as the Fiduciary Agent ("Fiduciaire") for the implementation of the fiducie, improving the position of the secured creditors towards the French bankruptcy law.

The refinancing involved CIB participating in the development of the financial structure, coordinating with multiple stakeholders, and ensuring that the transaction met the strategic objectives of the sponsors. The deal, which is one of the largest European digital infrastructure financing transactions to date, with a total debt of €5,8 billion, combines bank, institutional, and private placement liquidity, as well as fixed and floating rate loans across various tenors.

The XpFibre refinancing signifies increased complexity and innovation in its financial strategy, with a significant market impact by enhancing its growth potential. The refinancing also marked the first deal in the fibre sector in France to be based on a private rating. It demonstrates the growing demand for robust digital connectivity across the continent and opens the way for replicating this structure for maturing fibre businesses in France and Europe.

In conclusion, the XpFibre refinancing is a testament to the growing importance of digital infrastructure in Europe and the innovative financial strategies being employed to meet the demand. The deal has been widely recognised as a game-changer in the fibre sector and a significant step forward in ensuring robust connectivity across the continent.