LOGIX Fiber Networks, an enterprise and dark fiber provider in Texas, today announced that it has received an incremental $100m capital commitment from its controlling shareholder, Astra Capital Management, a private equity firm, alongside O’Connor Capital Solutions, the private credit unit of UBS O’Connor.
Presently, LOGIX serves enterprise and carrier customers with over 7.0k route miles and nearly 300k strand miles of fiber, implying an average strand count of ~43 strands per route mile. As shown below, LOGIX’s fiber network spans in and between Dallas-Fort Worth, Austin, San Antonio, and Houston, Texas.
LOGIX Fiber Networks – Overview
LOGIX Fiber Networks provides fiber-based data, voice services, and data center access to over 8k enterprise and carrier customers and connects nearly 100 data centers across Texas. Specifically, the company’s services include ethernet, dedicated internet access, wavelength, dark fiber, and backhaul.
Use of Proceeds
Astra Capital and UBS O’Connor’s incremental $100m capital commitment will allow LOGIX to grow its enterprise and carrier fiber network, expand into new markets, and serve more customers. In particular, the company identifies the following two uses for this new capital:
LOGIX will support customers through network build and cost rationalization programs. These include 5G backhaul services, data center support, and increased penetration of LOGIX’s owned fiber network services throughout its Texas footprint.
Demand for LOGIX’s services is coming from wireless carriers deploying and supporting 5G networks, data center operators offering increased access to cloud services, and enterprises & end users increasing their content consumption.
Refinancing Senior Debt
LOGIX intends to refinance a portion of its senior debt. More specifically, as of Q1 2022, LOGIX had a senior secured term loan and secured acquisition debt at minimum pricing of 6.75% (LIBOR + 5.75%, with a 1.00% floor). Additionally, this debt was scheduled for maturity in December 2024.
LOGIX Fiber Networks is led by Craig Collins as Chief Executive Officer. Previously, Collins was a senior executive at Transit Wireless. His prior experience also includes roles with Intermedia Communications, XO Communications, and Time Warner Cable.
In 2016, Astra Capital, Wafra Investment Advisory Group, and DB Private Equity, a division of Deutsche Asset Management (Deutsche Bank) acquired LOGIX. Subsequently, in 2018, Portfolio Advisors, a private markets investment firm, invested as part of LOGIX’s acquisition of Alpheus Communications.
Transaction Advisors – LOGIX Fiber Networks
LOGIX’s financial advisor was Houlihan Lokey. Additionally, LOGIX’s legal advisor was Debevoise & Plimpton.
Astra Capital Management – LOGIX, CTS, DartPoints
Astra Capital is a Washington, D.C.-based private equity firm which targets growth investments of $25m to $100m in the sectors of communications and technology services. Beyond LOGIX Fiber Networks and within digital infrastructure, Astra Capital holds a controlling interest in the following portfolio companies:
- Communication Technology Services (CTS): designs, installs, and operates in-building wireless networks and technology in the United States
- DartPoints: owner and operator of edge colocation data centers in the United States