Lumos inks $1.1B financing deal to further its FTTH build plan

Aug. 9, 2023
EQT provides sustainability-linked debt infrastructure financing to the telco.

Lumos Fiber signed a $1.1 billion sustainability-linked infrastructure financing deal with EQT to fund its fiber roll-out plans and refinance existing indebtedness. Sustainability-linked finance is designed to incentivize the borrower's achievement of environmental, social, or governance targets through pricing incentives. 

According to Lumos, this deal represents the first project finance style FTTH infrastructure financing in the US for an existing and integrated FTTH platform and the first US FTTH sustainability-linked financing structure. This new financing underscores Lumos’ scale capabilities and the Company’s continued commitment to ESG (environmental, social, governance).

As a fiber internet provider, Lumos aims to drive positive change and progress within the telecommunications industry as a responsible environmental, economic, and social steward. This new financing facility includes a sustainability-linked mechanism whereby the interest rate on the loan will be linked to several targets in line with Lumos and EQT’s overall mission.

“Today’s announcement will enable Lumos to achieve our long-term fiber roll-out plans,” said Brian Stading, CEO of Lumos. “We are thrilled to partner with financial institutions that share our company’s mission to build future-proof infrastructure and improve the quality of life for those in our communities.”

Lumos has continued to be aggressive with its fiber builds.

Besides a recent deal to provide service to Burlington, NC, the provider is also conducting fiber builds in other parts of North Carolina, South Carolina and Virginia. It currently provides services to nearly 200,000 homes and businesses across North Carolina and Virginia. In 2023 alone, the company announced multiple new market expansions, including those in Johnston, Harnett, New Hanover County, N.C., and Spartanburg and Richland County, S.C.

Likewise, Lumos is making progress in extending service in Virginia. Earlier this year, the telco received franchise approvals from the cities of Chesapeake, Portsmouth and Virginia Beach and is expanding service to Hampton Roads, Virginia.