Bluebird Network, a communications infrastructure provider and operator of more than 11,000 miles of fiber and two data centers, announces that it has received $285 million of five-year Senior Secured Credit Facilities. Proceeds from the Credit Facilities were used to refinance Bluebird’s existing indebtedness and will fund ongoing capital expenditures including network upgrades, expansion into new markets, and an awarded Middle Mile grant build. TD Securities acted as Lead Left Arranger on the financing and is the Administrative Agent for the Credit Facilities.
While interest rates remain high, tightened and scrupulous lending by financial institutions has put new sights on the global digital infrastructure market. The confidence in Bluebird’s business model is a testament to the company’s ability to execute on its plans. With the existing rise in digital infrastructure needs and the expected meteoric rise in bandwidth demand driven by Artificial Intelligence, the value of the global AI infrastructure market is projected to reach $309.4 billion by 2031, according to Allied Market Research.
“We’re thrilled to announce the closing of this refinancing,” says Michael Morey, President and CEO of Bluebird Network. “It’s a point of pride that we’re viewed by lenders as a trustworthy company to work with.”
Over the past year, Bluebird has built more than 360 new route miles of fiber and expanded into several additional markets throughout Missouri, Illinois and Iowa. This new financing provides Bluebird with the capital to execute development plans in accordance with the company’s strategic vision to have a fiber presence in 80 percent of cities with a population of 10,000 people or more across its 11-state footprint in the Midwest.
Beyond market densification projects, in 2024, Bluebird is planning additional long-haul fiber routes and recently completed an underground river crossing in St. Louis, traversing the Mississippi River and adding a new, diverse route to its network offerings. In 2023, the company was awarded a grant as part of the U.S. Department of Commerce’s Enabling Middle Mile Broadband Infrastructure Program. The grant will be used to build a highly desirable route connecting St. Louis and Tulsa, which is expected to be completed over the next four years.
“The upsized credit facilities will enable us to execute goals we’ve laid out for 2024 and beyond,” Morey says. “This includes growing our fiber network and continuing to take advantage of strategic opportunities as they may arise.”