Tucows Inc. Subsidiary Ting Fiber Closes $63 Million Offering for Expansion
TORONTO, Aug. 20, 2024 /PRNewswire/ – Tucows Inc. (NASDAQ: TCX) (TSX: TC), a leading provider of Internet services, announced today that its subsidiary, Ting Fiber, LLC (“Ting”), has successfully closed an offering by one of its subsidiaries for $63 million. The offering consists of Series 2024-1 Fixed Rate Senior Secured Notes, Class A-2 and Class B, maturing in August 2054.
The net proceeds from the Notes will be used by Ting to fund the expansion of its fiber networks, create capacity for growth, and for other general corporate purposes, including paying the fees and expenses related to the issuance of the Notes.
Ting’s CEO and Tucows President and CEO, Elliot Noss, expressed his satisfaction with the securitization, stating that it provides Ting with an efficient vehicle to raise capital for network expansion. Noss highlighted Ting’s success in generating borrowing capacity through network growth and customer acquisition. He emphasized that the market recognizes the long-term profitability of the U.S. coax-to-fiber transition, making the ABS product an attractive investment for stakeholders.
Ting will leverage its wholly-owned special purpose vehicle to manage the equity for all Contributed Markets and receive payments from residential and business customers. This includes over 125,000 serviceable addresses and 45,500 customers across six states. Ting will continue to operate the networks and deliver high-quality service to customers.
The Notes, priced at a weighted average coupon of 5.9%, will be issued at par. The securitization includes standard covenants and investor protections to ensure the stability of the investment. The success of this issuance demonstrates Ting’s ability to efficiently raise capital for future network expansion.
Goldman Sachs acted as the placement agent on the deal, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Ting.
About Ting
Ting provides lightning-fast fiber Internet in select U.S. towns and cities. Ting is committed to net neutrality and supporting local communities through various initiatives and sponsorships.
About Tucows
Tucows helps connect more people to the benefits of Internet access through various services, including domain management and fiber-optic Internet infrastructure. Ting and other Tucows subsidiaries aim to provide reliable and efficient services to customers.
In conclusion, the successful closure of this offering reaffirms Ting’s commitment to expanding its fiber networks and providing high-quality services to customers. The securitization allows Ting to raise capital efficiently and continue its growth trajectory in the competitive Internet services market. Tucows Inc. Warns Investors of Potential Risks
Tucows Inc., a leading internet services provider, has issued a warning to investors about the potential risks that could impact the company’s business, financial condition, results of operations, or liquidity. In a recent statement, the company emphasized the importance of caution when considering investments in its securities.
The company’s cautionary statements highlight the uncertainty and potential volatility in the market that could affect the value of its securities. Investors are urged to carefully review the full cautionary statements provided by Tucows Inc. before making any investment decisions.
It is important for investors to be aware of the risks involved in investing in securities, as market conditions can change rapidly. Tucows Inc. acknowledges that unforeseen events or circumstances could have a significant impact on the company’s financial performance and the value of its securities.
While Tucows Inc. is committed to providing transparency and timely updates to investors, the company stresses that it has no obligation to update forward-looking statements to reflect events or circumstances that occur after the statements were made.
In conclusion, investors are advised to exercise caution and conduct thorough due diligence before investing in Tucows Inc. securities. By staying informed and understanding the potential risks involved, investors can make more informed decisions and protect their investments.
