TORONTO – Today Ting Fiber, a subsidiary of global internet services leader Tucows (NASDAQ: TCX) (TSX: TC), announced that it has secured up to $200 million USD in financing from Generate Capital—a leading sustainable infrastructure investment and operating platform. Generate's investment will accelerate Ting's deployment of next-generation communications infrastructure to municipalities across the United States looking for integrated digital and resilient energy solutions.
Both Ting and Generate are committed to building and operating infrastructure that supports resilient and decarbonized communities. Ting has changed the way its customers feel about their internet service provider and Generate's one-stop-shop business model is accelerating the adoption of sustainable smart cities solutions. The companies believe that their shared vision and collective expertise will expedite the roll-out of Ting fiber networks in the years ahead, connecting more residents and businesses to fiber, faster.
"We chose Generate because we wanted more than just a financing partner. We wanted their project management expertise, sustainability expertise and the wide range of capital solutions they offer——all of which will help Ting as we continue to rapidly scale our operations," said Elliot Noss, CEO of Tucows and Ting. "But most importantly, we respect and trust the team at Generate and look forward to working together for years to come."
Signed on August 8, 2022, this financing agreement provides Ting preferred equity of up to $200 million USD with no warrants attached, and with $60 million USD funded on close. The subsequent $140 million USD will be advanced as Ting achieves predetermined operational milestones.
With Generate's support, Ting will accelerate its network deployment and is poised to take full advantage of the coax-to-fiber transition opportunity across the United States.
"Generate is committed to bringing sustainable resources to communities and we are thrilled to work with a mission-aligned partner like Ting," said Andrew Marino, Senior Managing Director at Generate. "Ting brings expertise highly complementary to Generate's sustainable infrastructure know-how, and we look forward to deploying smart cities solutions with them to drive resource efficiency for municipalities over the long term."
Since launching in 2014, Ting has focused on strategically expanding its footprint, developing a successful customer acquisition and retention playbook, and has structured its operations for scale. Today Ting has a presence in 15 markets nationwide, with operations in Arizona, California, Colorado, Idaho, Maryland, North Carolina and Virginia.
With this preferred equity financing, Tucows has reorganized its existing credit facility to exclude Ting and its subsidiaries from the security package and group of borrowers. More information on this financing announcement can also be found in the company's Form 10-Q, which will be filed Tuesday, August 9, 2022.