#United States #Cincinnati #Oak Hill Capital #Omni Fiber #Stonepeak Credit

Omni Fiber Secures $200 Million for Expansion

Omni Fiber, a prominent provider of high-speed fiber optic internet services in the Midwest, has successfully raised $200 million, consisting of $150 million in debt financing and a $50 million equity investment. This funding is critical for the company as it continues to expand its services in underserved communities across the Midwest and Texas.

Funding Breakdown

The financing includes an incremental debt facility from Stonepeak Credit and Oak Hill Advisors, alongside new equity contributions from Oak Hill Capital. Additionally, Omni Fiber has secured a $10 million working capital facility from Republic Bank and Trust Company.

Since its inception in 2022, Omni Fiber has committed over $400 million towards developing its XGS-PON fiber network, aiming to enhance broadband access to a wider audience. As of the previous month, the company projected its network would cover nearly 340,000 locations by year-end, a significant leap for a company that started service in just one community less than three years ago.

Rapid Growth and Community Impact

Omni Fiber currently serves a blend of residential and business clients in approximately 60 small to mid-sized communities spanning Ohio, Pennsylvania, Michigan, and Texas. They are currently constructing networks in around 25 more communities and initiating network design and engineering efforts in others.

Darrick Zucco, the founding CEO of Omni Fiber, expressed gratitude for the funds, stating, “This infusion of capital will fast-track our expansion, helping to bring fiber-optic connectivity to regions that have been overlooked until now.”

Oak Hill Capital’s Managing Partner, Scott Baker, reaffirmed their confidence in Omni Fiber’s operations and growth trajectory, highlighting the partnership’s impact on the company’s ability to scale its business efficiently. He remarked, “We take pride in the operational excellence exhibited by the Omni Fiber leadership, which remains central to our ongoing investment philosophy.”

Strategic Partnerships

Stonepeak's Senior Managing Director, Ryan Roberge, added to the momentum by mentioning their excitement about increasing their investment in Omni Fiber. Roberge noted how the team’s execution of business strategies has impressed stakeholders, solidifying their belief in the potential for a high-quality fiber network serving Midwestern customers.

Greg Leveto, Portfolio Manager at Oak Hill Advisors, echoed these sentiments, commending Omni Fiber’s solid commitment to enhancing fiber broadband access in communities previously lacking this critical infrastructure. The collaboration amongst these financial partners sets the stage for accelerated growth in the fiber optic sector.

About Omni Fiber

Founded in 2022, Omni Fiber operates in Ohio and is backed by Oak Hill Capital, one of the leading investment firms in telecom. With a seasoned leadership team combining over a century's experience, the company offers a range of internet services, boasting symmetrical speeds up to 10 Gbps and no hidden fees or data caps. Their customer-centric approach includes local support and competitive pricing, appealing to a broad customer base across the United States. For more information, visit Omni Fiber’s website.

Conclusions

As the demand for high-speed internet continues to rise, especially in underserved regions, investments like that of Omni Fiber are a vital part of ensuring equitable access to digital resources. The ongoing expansion plans signal a promising shift towards better internet services and increased connectivity across the Midwest and Texas, ultimately fostering economic growth and accessibility.