Omni Fiber received an additional $200 million in financing from Oak Hill Capital, Stonepeak Credit, and Oak Hill Advisors (OHA), the company announced today.
Stonepeak Credit and Oak Hill Advisors (OHA) provided a total of $150 million in incremental debt financing, while Oak Hill Capital added $50 million in incremental equity financing.
Omni Fiber said it plans to use the funds to continue its expansion in the Midwest and Texas. This is in addition to the $400 million Omni Fiber has already spent to build its XGS-PON fiber network, which is on pace to reach about 340,000 locations by the end of 2025.
The incremental financing from Stonepeak Credit and OHA, which follows a previous $150 million in debt financing from Stonepeak Credit announced in July 2024, will fund Omni Fiber’s continued expansion into communities throughout the Midwest and Texas.
Omni Fiber started operations December 2022 and now serves residential and business customers in about 60 small and mid-size communities in Michigan, Ohio, Pennsylvania, and Texas, with construction, network design, and engineering activities in many other locations.
“We are grateful that the additional funds will accelerate our rapid expansion to bring fiber-optic connectivity to those who have been previously underserved,” said Omni Fiber Founding CEO Darrick Zucco in a prepared statement about the financing. “We welcome our new funding partners OHA and Republic Bank.”
Stonepeak had previously provided Omni Fiber with $150 million in debt financing for expansion in the Midwest.
Oak Hill Capital has been active in the fiber market. It was the majority owner of Omni Fiber and Lit Fiber when they merged last year.
“This transaction will allow both companies to expand more quickly and improve the services offered to Lit Fiber’s customers. It is a win-win for current and future customers,” Oak Hill Managing Partner Scott Baker said at the time.
