Xplore Completes Recapitalization With C$1.6 billion of New Private Investment and Government Funding for Fibre Network Expansion

Combination of new equity, debt, and government funding brings more than C$1.6 billion of investment to the continued expansion of Xplore's next generation fibre-to-the-home network in underserved Canadian markets

MARKHAM, ON, Oct. 28, 2024 /CNW/ - Xplore Inc., a leading provider of high-speed broadband services to Canadians in rural communities, today announced the close of a comprehensive recapitalization.  More than C$1.6 billion of new funding has been committed through both private investment and multiple federal and provincial government broadband programs.

The investment provides a fully financed expansion plan for Xplore's continued fibre-to-the-home network roll-out, which will bring multi-gigabit speeds to more than 400,000 homes in rural Canada. This follows Xplore's June announcement that the company had secured a framework agreement for the new financing.

The investment is being led by Xplore's controlling shareholder, Stonepeak, and includes other institutional investors.

Xplore's fibre network expansion will also benefit from support from the federal and provincial governments. This support includes subsidies from the AHSIP program funded by the Government of Ontario and administered by Infrastructure Ontario, and the Universal Broadband Fund administered by Innovation, Science and Economic Development Canada and its partners. The Canada Infrastructure Bank is also providing project-specific debt financing to support Xplore's roll-out of broadband infrastructure in various provinces.

Xplore has been a substantial participant in government programs funding fibre network construction in recent years. This announcement follows Xplore's successful completion in October 2023 of a C$132 million fibre build project in Quebec, supported by Opération Haute Vitesse, through which Xplore constructed 2,700km of fibre to serve more than 36,000 homes. The company is currently progressing fibre builds in Ontario, Manitoba, Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island, which will cover more than 400,000 homes by 2027. This funding will also enable Xplore to utilize its 1.6 billion MHZ-POP spectrum portfolio to offer next generation 5G fixed wireless services to over 1.5 million homes across Canada.

Fran Shammo, Xplore's Executive Chairman and former CFO of Verizon, said, "This is a significant milestone for Xplore that will provide meaningful benefits to our customers. We are grateful for the support we have received from the Canadian government and our investors to progress our mission of bringing world-class broadband to as many rural communities as we can, improving connectivity for better everyday living."

Andrew Thomas, Senior Managing Director at Stonepeak, said, "Stonepeak is an active investor in fibre networks across the world. We look forward to continuing to leverage that expertise, together with the strong support received from numerous Canadian government bodies, to rapidly expand access to fibre broadband to hundreds of thousands of underserved Canadians."  

Geoff Lowe, Xplore's Interim Chief Executive Officer, added, "We look forward to working with our investors and government partners to deliver game-changing broadband connectivity to people in underserved areas in Canada. We have a terrific team of dedicated professionals based here in Canada, providing an exceptional customer experience, and advancing our mission of bringing high-speed Internet to Canadians in rural communities."

About Xplore Inc.
Xplore Inc. is Canada's fibre and 5G broadband company for rural living. Xplore is committed to the relentless pursuit of an improved broadband experience for all Canadians. Xplore is building world-class fibre optic and 5G wireless networks to enable innovative broadband services for better every day rural living, for today and future generations.

About Stonepeak
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $70 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus on downside protection and strong risk-adjusted returns. Stonepeak, as sponsor of private equity and credit investment vehicles, provides capital, operational support, and committed partnership to grow investments in its target sectors, which include communications, energy and energy transition, transport and logistics, and real estate. Stonepeak is headquartered in New York with offices in Houston, London, Hong Kong, Singapore, Sydney, and Abu Dhabi. For more information, please visit www.stonepeak.com.

SOURCE Xplore Inc.

Xplore media contact: Indrani Ray, Director, Corporate Communications, [email protected], [email protected]