US fiber provider Surf Internet has secured $100 million of debt financing from DigitalBridge Credit, a division of DigitalBridge Group, Inc.

The new debt capital will support the company's aims of driving its broadband rollout across the Great Lakes region.

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More specifically, this will see Surf expand its dense fiber networks into more communities, with the company serving customers across Indiana, Illinois, and Michigan.

The company revealed that the debt raise comes alongside 'significant' equity investment from Surf's existing sponsors Bain Capital and Post Road Group, and the management team. Surf was acquired by Bain Capital and Post Road Group in 2021.

“We are thrilled to enter the next phase of expansion with highly experienced digital infrastructure investment partners who share our vision for building Surf into a leading fiber-to-the-premise (FTTP) provider,” said Gene Crusie, CEO of Surf Internet.

“The addition of DigitalBridge Credit to our capital structure follows the tremendous support over the past several years from our equity partners, Bain Capital and Post Road Group, who remain committed to our growth strategy,” added Ryan Delack, CFO of Surf Internet.

Surf currently serves 27,000 customers across 45 markets, with plans to expand to 60 with this capital. The company said it expects to exceed 100,000 premises passed with its FTTP service this year.

The transaction closed on February 3, 2023, with Houlihan Lokey serving as exclusive financial advisor and placement agent to Surf Internet, while Kirkland & Ellis LLP served as legal counsel. White & Case served as legal counsel to DigitalBridge Credit.

Private equity firm Bain Capital previously purchased China's Wangsu Science and Technology data center division for $146 million in 2019. In the same year, Post Road Group provided the senior debt financing for New Continuum Data Centers' acquisition of a Chicago data center that it had been leasing since 2013.

Meanwhile, DigitalBridge recently finalized its acquisition of AMP Capital’s infrastructure equity investment business, and completed the acquisition of a majority stake in Deutsche Telekom's towers unit, GD Towers, alongside Brookfield.

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