Deutsche Glasfaser (DG) has reached an agreement with its shareholders EQT and OMERS and its lenders on a comprehensive restructuring of its capital structure. As part of the agreement, the shareholders will provide the company with significant equity capital. In addition, the financing partners will make a substantial contribution through new debt financing. The total additional capital amounts to more than €1.2 billion.

Furthermore, the existing debt capital will be restructured on long dated terms, and the amount attributable to the operating level will be materially reduced, with the transaction expected to complete by the end of June.

Andreas Pfisterer, CEO of the Deutsche Glasfaser Group, said: “This agreement is an important milestone and very good news for our employees and partners. It ensures continuity as well as planning and financial security. With this, we are fully financed and clearly stand out from the competition. I thank our shareholders and financing partners for their trust. On this basis, DG will complete the planned network expansion and simultaneously drive forward the ongoing transformation from a strongly construction-focused company to a customer-centric broadband provider.”

A spokesperson for EQT and OMERS stated: “We are pleased that a plan to establish a robust capital structure for Deutsche Glasfaser has been secured. This recapitalization will support the company’s growth and ongoing fibre deployment for the benefit of customers and communities. We thank all parties involved for their efforts and look forward to continuing our support of management as the business moves into its next phase of growth.”