Wind Mobile Secures $425 Million in Financing to Build LTE Network

by Istvan Fekete on December 14, 2015

wind_mobileBuilding a wireless network is a difficult task which requires spectrum ownership and a tremendous amount of capital to cover equipment costs. After many years of “waiting”, Wind Mobile has proudly announced that it has both.

The wireless startup said last week that it has closed a round of senior secure debt financing worth $425 million from a syndicate co-led by three of Canada’s biggest banks to build a faster, more robust wireless network using telco equipment from Nokia.

Wind’s LTE network will be deployed over the next 18 months and the company hopes to attract new subscribers and keep customers satisfied.

Wind’s CEO Alek Krstajic said that the credit arrangement, which is co-led by TD Securities, BMO Capital Markets, and the Canadian Imperial Bank of Commerce, took five months of tough negotiations and has an interest rate in the 3% range.

Also, as part of the deal, Wind’s existing debt facilities have been refinanced, which means the wireless startup will be paying less in borrowing costs and able to devote those funds to repairing a spotty network, as reflected in the number of complaints the carrier has received through the CCTS.

This is a major step forward for Wind, signalling that the carrier is here to stay. It shows that Wind has the power to compete with the Big Three in the areas where it operates. However, it will take some time for this LTE network to materialize and, when finished, it will require more work from the carrier to keep its customers.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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