$500+ million of additional funding will support
fiber-to-the-home network construction to reach as many as 1
million locations across the state
SOUTH
SAN FRANCISCO, Calif., Sept. 9,
2024 /PRNewswire/ -- Race Communications, a leading
Fiber-to-the-Home (FTTH) provider in California, announced today that it has
secured more than $500 million in
additional capital to accelerate the expansion of its fiber network
across the state. This capital raise includes $375 million in equity from Oak Hill Capital, the
existing majority investor, and its limited partners. The funding
also features incremental debt financing from existing lender AB
Private Credit Investors, who will also be participating in the
equity round. This significant infusion of capital will support
Race's ambitious plan to extend its FTTH network to as many as 1
million locations throughout California over the next several years.
Established in 1994, Race Communications is a leader in
delivering high-speed internet to communities across California. With a current reach of
approximately 200,000 locations, Race has made significant strides
in bridging the digital divide by providing reliable and fast
internet service to a diverse range of communities in California, including metropolitan suburbs
such as Lancaster, Chico, and Yuba
City and rural areas in the Central Valley. This new funding
will enable Race to enhance its efforts to connect even more
Californians to the benefits of fiber-optic technology.
"California presents a
tremendous opportunity for fiber deployment, and this new funding
allows us to ramp up our construction efforts across the state,"
Raul Alcaraz, CEO of Race
Communications, said. "We are thrilled to have the continued
support of Oak Hill Capital and to welcome our new partners as we
work together to bring world-class internet service to an even
larger number of residents and businesses throughout the
state."
Oak Hill Capital has been a dedicated partner to Race
Communications, supporting its growth and expansion efforts since
its initial investment in 2020. "Race Communications has a strong
track record of success in delivering high-quality fiber-optic
services to communities across California," Scott
Baker, Managing Partner at Oak Hill Capital, said. "We are
excited to deepen our commitment to Race to further enhance Race's
ability to meet the growing demand for high-speed internet in our
home state of California."
Oak Hill Capital's broader fiber portfolio, which spans
thirty-one states, further underscores its commitment to advancing
digital infrastructure across the United
States. With significant investments in several FTTH
companies, Oak Hill is a leading
investor in the industry, seeking to drive innovation and growth in
the broadband sector.
Race is also excited to announce the addition of two independent
directors to its Board of Directors; Jim
Gleason is the CEO of Vexus Fiber, a FTTH operator across
Texas and surrounding states
backed by Oak Hill and now a
subsidiary of Metronet, and Harold
Zeitz is the CEO of Ziply Fiber, a FTTH operator across the
Pacific Northwest and former COO of Oak
Hill-backed cable and fiber operator Wave Broadband. Mr.
Gleason and Mr. Zeitz have both led the expansion of their
companies' FTTH networks to underserved markets in their respective
regions and we believe are well-positioned to support Race's
accelerated growth in California
as board members.
About Race Communications
Race Communications is a leading provider of fiber-to-the-home
(FTTH) services, committed to delivering reliable, high-speed
internet to communities across California. Founded in 1994, Race has grown to
serve hundreds of thousands of communities and continues to expand
its network to reach underserved and rural areas. Race is dedicated
to bridging the digital divide and providing cutting-edge
technology to all Californians.
About Oak Hill Capital
Oak Hill is a longstanding private
equity firm focused on the North
America middle-market. Oak
Hill applies a specialized, theme-based approach to
investing and implements a highly systematic approach to theme
development, proactive origination, and value creation in
partnership with management to build franchises of lasting value.
Over the past 35+ years, Oak Hill
and its predecessors have raised over $23
billion of initial capital commitments and co-investments
and invested in over 110 companies. For more information, please
visit www.oakhill.com.
About AB Private Credit Investors
Established in 2014,
AB Private Credit Investors (AB-PCI) is AB's private corporate
credit platform. AB-PCI's team of more than 80 professionals
manages $19.2 billion of capital
available for investment. AB-PCI's Digital Infrastructure and
Services team provides scalable and flexible credit solutions to
support leveraged buyouts, network builds, acquisitions, and other
growth initiatives to all sub-verticals in the digital
infrastructure ecosystem. The dedicated 9 person DIS team has
committed nearly $5 billion to more
than 50 sector companies. Visit here for more
information on AB-PCI.
For additional information or press inquiries please
contact:
Kaitlin Colson
Director of Sales and Marketing
Race Communications
kaitlin.colston@race.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/race-communications-announces-new-capital-raise-to-accelerate-california-expansion-302240943.html
SOURCE Race Communications