PTI closes $940m finance facility

PTI closes $940m finance facility

17 May 2021 | Natalie Bannerman

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Phoenix Tower International (PTI) has closed a HoldCo financing facility to support its international expansion plans.

"This financing provides PTI with the flexibility to continue to grow our business across all markets with incremental financing available at our disposal, and will allow us to deliver for our customers, counterparties and business partners in an expedited manner with a strong lender group,” said Dagan Kasavana (pictured), chief executive officer of PTI.

“CDPQ and AMP Capital's financing will support PTI as we continue to construct and invest in digital infrastructure across all markets and lead the necessary 4G and 5G build-outs on behalf of our customers and the populations we serve around the world."

At close the facility is comprised of three tranches that may be further increased through an accordion feature (an option that gives a company the right to increase its line of credit) up to a total of €775 million ($940 million) to fund future growth.

Caisse de dépôt et placement du Québec (CDPQ), a global investment group, and AMP Capital, a global investment manager, provided the financing.

"This financing in PTI builds on our previous experience to contribute to the expansion of digital infrastructure globally, alongside recognised industry leaders in this fast-growing sector," said Marc Cormier, executive vice-president and head of fixed income at CDPQ.

"By providing a customised and flexible financing solution to PTI, CDPQ is supporting a high-quality operator well positioned to seize opportunities in attractive markets that are experiencing a rising demand for connectivity."

The multi-jurisdiction funding round has been touted as a landmark deal supporting PTI's focus on being a global provider of infrastructure assets. Specifically, the financing will be used to fund PTI's recent growth in Europe and provides additional capacity to support further growth in both existing and new global markets.

"PTI is one of the leading global owners and operators of tower infrastructure, and AMP Capital is pleased to have collaborated with PTI and CDPQ to implement a highly bespoke financing to support their growth ambitions," said Patrick Trears, global head of infrastructure debt at AMP Capital.

"With the demand for telecommunication infrastructure set to continue to increase, we believe that PTI is well-placed to assist in meeting this demand and capitalise on associated growth opportunities across their markets. Telecommunications infrastructure remains a key sector for our infrastructure debt strategy, and with this transaction we are pleased to have added another high-quality investment for our investors around the world."