POWER SUSTAINABLE CLOSES CAD $85M TERM LOAN INVESTMENT IN CANADIAN FIBER OPTICS CORPORATION ("CFOC")

CFOC aims to provide rural and remote communities with reliable and fast fiber optic internet

MIAMI, FLA, Jan. 14, 2025 /CNW/ - Power Sustainable Infrastructure Credit ("PSIC") recently closed on a CAD $85M financing for Canadian Fiber Optics Corporation ("CFOC"), a fiber optics company based in Calgary, to support the build-out of broadband internet in rural Western Canada.

CFOC designs, builds, and operates fiber optic networks to provide high speed internet services to residential, commercial and enterprise customers in rural or remote communities. Since 2017, CFOC has built 1,000km of fiber, passing 16k+ premises with over 4k subscribers as of December 31, 2024. CFOC's current ownership group includes funds managed by Tikehau Star Infra and the Bloomer Family Office.

CFOC intends to utilize the financing provided by Power Sustainable to contribute towards improved rural connectivity for communities that often lack basic internet. According to a report¹ by the Alberta Government, 67% of rural Albertans and 80% of Indigenous Communities have unreliable access to high-speed internet at federal target speeds. Addressing this gap has been frequently cited as a key lever to support economic growth and productivity.

Tom Murray, Managing Partner of Power Sustainable Infrastructure Credit, said: "We are thrilled to be partnering with CFOC as it executes on a robust pipeline of growth opportunities throughout Western Canada. The company and ownership team's focus on building reliable, high speed, fiber networks for underserved communities in an environmentally responsible manner is highly aligned with our financial and sustainability objectives."

Launched in 2023, PSIC has now completed four transactions across North America. The strategy aims to provide creative and highly tailored financing solutions to infrastructure companies within the energy and decarbonization; transportation and logistics; digital infrastructure; social infrastructure, and utilities and recycling sectors.

"Tikehau Star Infra is excited to partner with PSIC and the CFOC team in the next chapter of growth for the company" said Christophe Petit, Head of Tikehau Star Infra. "With this commitment from PSIC, CFOC will have the funding needed to continue to deliver high speed fiber internet services to rural Alberta and beyond. We look forward to working with the PSIC team on this critical infrastructure investment." 

"CFOC is proud of the investments we have made across rural Alberta over the last eight years. The critical infrastructure will positively impact the communities and regions we service for generations to come. In partnership with PSIC, Tikehau Star Infra, the Bloomer Family Office and our team, CFOC will further expand our services to underserved communities in rural Alberta and beyond" said Arjen Kaput, Co-Founder and CEO.

"Together, we will become Canada's most trusted connectivity provider" said Jodi Bloomer, Co-Founder and President of Development. "The partnership underscores CFOC's dedication to bridging the digital divide and driving economic growth."

Orrick, Herrington & Sutcliffe LLP served as New York legal counsel and Osler, Hoskin & Harcourt LLP served as Canadian legal counsel to PSIC. Broadband Success Partners served as independent engineer, Cartesian as market consultant, and American Global as insurance advisor to PSIC. Pinpoint Capital Advisors served as financial advisor, Paul Hastings LLP served as New York legal counsel and Bennett Jones LLP served as Canadian legal counsel to CFOC. Stikeman Elliott LLP served as legal counsel to Tikehau Star Infra.

About Power Sustainable

Power Sustainable is an alternative asset manager which finances companies and projects that aim for both competitive returns and positive sustainability outcomes. The firm offers institutional investors exposure to alternative assets, which aim to accelerate and scale sustainable solutions across multiple industries. Power Sustainable is a subsidiary of Power Corporation of Canada (TSX: POW), an international management and holding company that focuses on financial services in North America, Europe, and Asia.

With CAD 4.0B in assets under management (as of September 30, 2024), Power Sustainable's mission is to catalyze capital towards clean global solutions. Learn more on Power Sustainable's LinkedIn and Website.

About Canadian Fiber Optics Corporation

Canadian Fiber Optics Corporation is a builder, owner, and operator of fiber optic networks, providing high bandwidth, internet services to rural residences and businesses in Western Canada since 2017. For more information about Canadian Fiber Optics Corporation please visit https://canadianfiberoptics.ca/ 

About Tikehau Star Infra

Tikehau Star Infra, a subsidiary of Tikehau Capital, a global alternative asset management group, is a U.S. headquartered developer and manager of infrastructure assets in North America. With an investor base that includes large institutional investors such as insurance companies and pension funds, Tikehau Star Infra has access to hundreds of millions in capital.

The focus of Tikehau Star Infra is primarily delivering infrastructure projects across the transportation, social, environmental and telecommunications sectors. With investments in projects which have a total asset value of more than $10 billion (as of December 31, 2023), Tikehau Star Infra is one of the leading infrastructure developers in the U.S. Leveraging decades of collective experience in design, construction and finance, the Tikehau Star Infra team is well positioned to strive to achieve strong results for our clients, partners and investors.

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¹ Alberta Broadband Strategy, "Connecting Albertans, growing the economy" (2022)

SOURCE Power Sustainable

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