Fiber firm euNetworks has closed on a €2.1 billion ($2.33bn) equity recapitalization.
The funding was led by a Stonepeak-managed vehicle anchored by Mercer and Aware Super, and direct investments from the Investment Management Corporation of Ontario (IMCO) and APG Asset Management.
It's the latest debt refinancing held by euNetworks, following the closing of a €1.26bn ($1.4bn) refinancing of existing debt in June, which was also driven by two of its existing investors, Stonepeak and IMCO.
In a statement, euNetworks said the latest refinancing will help the company "continue to scale and execute against its strategic priorities."
euNetworks builds and invests in city and long-haul fiber networks to connect key European data centers and data hubs.
The bandwidth infrastructure company owns and operates deep fiber networks in 18 cities, while its long haul network spans 45,000 route kilometers across 17 countries. At present, euNetworks directly connects more than 542 data centers.
“Our successful debt refinancing and equity recapitalization underscores the robust value proposition and fundamental infrastructure delivered by euNetworks," said Kevin Dean, interim chief executive of euNetworks.
"We’ve had a fantastic partnership with Stonepeak and IMCO since 2018 along with our other investors, and we extend our gratitude to them for their unwavering support. The combination of Stonepeak, IMCO, APG, Mercer, and Aware Super coming together as the new euNetworks represents a very strong opportunity for our customers, our people, our partners, and the communities in which we operate."
Stonepeak first acquired a majority stake in euNetworks back in January 2018, and has since increased the number of connected data centers by more than 60 percent, secured three acquisitions, and optimized the capital structure through incremental debt and equity funding.
Last year, the investor recapitalized euNetworks through the sale of the data center and fiber business to a Stonepeak fund alongside strategic investments from APG Asset Management and IMCO.
Earlier this week, Paula Cogan stepped down from her position as CEO and has been replaced by Dean on an interim basis. euNetworks said earlier this month that it has kicked off its search for a permanent CEO, who is expected to join the company next year.
Dean returns to the business having previously worked at the company between 2014 to 2022, serving as CMO.
