Barclays Private Credit Partners has provided a term loan facility of up to €45 million for London-headquartered bandwidth infrastructure firm euNetworks Group.
euNetworks owns and operates 13 fibre based metropolitan networks across Europe covering 38 cities in nine countries. The firm reported recurring revenue of €24.8 million for its first quarter, up 8 percent compared to last year’s first quarter.
The loan is split into two tranches: the term loan may be expanded to €45 million once the initial €30 million has been successfully deployed, and “organic or inorganic growth opportunities materialise”, the firm said in a statement.
As with most loans, it comes at a cost. Terms and conditions for the committed term loan facility including interest rate, total leverage incurrence test and delayed draw feature are favourable to market. Barclays has also retained an option to participate in any future equity fundraising by euNetworks.
Brandy Rafuse, chief executive officer of euNetworks, believes the new debt financing will assist the firm in supporting the company’s long-term growth initiatives. “We are focused on delivering our targets for further scale,” he explained. In 2011, euNetworks aquired Frankfurt-based communications company LambdaNet Deutschland and WAN provider TeraGate.
Looking ahead, Rafuse hopes the funding will enable the firm to “deliver more bandwidth infrastructure services to growing in-place customers and new customers”.
Originally launched in 2008 as Barclays Structured Principal Investing, Barclays’ private debt group is headed by Brent Humphries, who oversees a team of approximately 11 bankers in New York. Rebranded as Barclays Private Credit Partners Fund in 2010, the fund targets mid-market companies that generate $15-150 million of EBITDA, according to marketing materials.