LONDON (ShareCast) - (Sharecast News) - Super-fast internet provider Bigblu Broadband has secured £12.0m of new equity and debt funding to support the build-out of its fibre backed fixed wireless network business across the UK.
The funding includes £4.0m of new equity initially with a further £4.0m of equity committed and a £4m revolving credit facility provided by HSBC

Bigblu locked in the funding via its QCL subsidiary, the holding company for Quickline Communications, which allows it to "significantly increase" the size and scale of its fixed wireless access business, with the group now targeting a customer base of roughly 30,000 subscribers over the next three years.

The AIM-listed firm expects to see significantly increased revenues, underlying earning and profitability as the new capital gets deployed and the business increases in scale.

The transaction values QCL at £15.0m, a marked uplift compared to the £8.4m the group was valued at when Bigblu acquired the company back in August 2017, and reduces Bigblu's gearing to approximately 1.0x - 1.5x net debt/EBITDA, allowing it to continue investing across the group and maintain "a robust balance sheet".

Bigblu also said it plans to invest around £20.0m over the next three years, including funds provided by potential government grants and internal cash flows.

As of 0825 BST, Bigblu share shares climbed 4.42% to 118p.

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