Metro Communications Announces Inaugural Securitization

SULLIVAN, Ill.--(BUSINESS WIRE)-- MCC Network Services, LLC (“Metro Communications” or the “Company”) today announced that a newly formed, limited-purpose, bankruptcy remote, wholly-owned subsidiary of the Company, Metro Communications Issuer LLC (the “Issuer”), has closed on a new $247 million offering of secured fiber network revenue term notes with an anticipated repayment term of five years (collectively, the “Notes”). The Notes will be secured by fiber network assets and customer agreements. Proceeds from the offering of the Notes will be used to repay existing parent indebtedness, pay transaction fees and expenses, fund the reserve accounts and for general corporate purposes.

In addition to the offering of the Notes, the Issuer closed on a new $75 million offering of secured fiber network revenue delayed draw notes (the “Delayed Draw Notes”), which are subject to leverage tests and other customary drawing conditions. The Delayed Draw Notes will be secured by fiber network assets and customer agreements. Proceeds from the offering of the Delayed Draw Notes will be used to fund the Company’s growth initiatives.

“The additional funding strengthens our balance sheet and positions Metro on a continued trajectory fostering growth by serving customers,” stated Zak Horn, Founder and President of Metro. “We’re fortunate to partner with those who understand our business, as these relationships are vital to our success.”

Morgan Stanley & Co., LLC acted as Sole Structuring Agent and Placement Agent. Legal counsel to the Company was provided by Kirkland & Ellis LLP. Legal counsel to the investors was provided by Paul Weiss, Rifkind, Wharton & Garrison LLP. Legal counsel to the placement agent was provided by King & Spalding LLP.

About Metro Communications

Metro is a regional internet and network services provider that builds and operates fiber optic networks serving the wireless, enterprise, wholesale and consumer markets. Founded in 2000, Metro Communications manages an all fiber-optic network across Illinois, into Indiana and Missouri. The portfolio’s telecom services are provided through the Company’s fiber-to-the-home (FTTH) Conxxus business as well as its enterprise and wireless business. The Conxxus business includes multi-gigabyte per second internet, voice, and video services to consumers and small-to medium sized businesses (SMBs). The latter category’s services include transport, cellular backhaul, wavelengths, dedicated internet, private line, and dark services for business and carriers.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250214959270/en/

Media Contact:
Brittany Walters
[email protected]

Source: Metro Communications

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