Rural High-Speed Internet Project: Expanding Broadband Access in Northern New England
The Rural High-Speed Internet Project is the third installment in CanAm’s successful series of high-speed internet projects in Virginia and Texas. This latest project is a collaboration between CanAm Enterprises’ Regional Center and Consolidated Communications, a leading provider of business communications and broadband internet services in the United States. With an investment of $1.5 billion, it is one of the largest and most significant fiber optic internet projects in Northern New England.
EB-5 investment funds will help Consolidated finance the installation of fiber optic broadband over existing DSL/copper cable infrastructure to cell sites located in designated “rural areas” of Northern New England. This project will bring high-speed fiber optic internet to 80,000 homes that currently lack access due to inadequate infrastructure.
CanAm was the first regional center to identify rural broadband EB-5 projects at a time when there was a shortage of high-quality rural EB-5 projects.
The project is currently moving into its second phase after all investment slots in the first phase were filled within just five months of fundraising
INVESTMENT DETAILS
PHASE 1 (SOLD OUT)
PHASE 2 (OPEN FOR INVESTMENT)
March 2024 – March 2027
August 2024 – June 2026
EB-5 Capital
$80 million
$60 million
Number of Investment Slots
100
75
Job Creation
23+ jobs per investor
22+ jobs per investor
EB-5 job requirements are expected to be met through construction expenditures within the first two years. The economic impact study confirms that the project is primarily located in rural areas and will generate sufficient qualifying jobs, significantly exceeding USCIS job creation requirements.
Investment Amount
$800,000 per investor
Loan Term
4 years + 1 + 1 (maximum 6 years)
Collateral & Security
Completion and loan repayment are guaranteed by the parent company. The EB-5 loan will be secured by a senior mortgage and equity interests in all CNSL assets, with equal priority to similar collateral securing existing senior loans and bonds.
Project Capital Structure
PHASE 2(OPEN FOR INVESTMENT)
Based on the estimated total valuation as of December 31, 2023, with $80 million raised from EB-5 investors in Phase 1 and $60 million in Phase 2, the total capitalization of Consolidated is approximately $3.4 billion.
Allocation within Consolidated’s capitalization of approximately $3.4 billion.
As part of the acquisition agreement, Searchlight Capital and its co-investors have committed to investing an additional $300 million in equity to support the company.
The company’s current revenue, existing bank credit facility, and the additional equity investment from Searchlight Capital are sufficient to cover all necessary capital expenditures to complete the company’s fiber-optic transition. Completion guarantees will be provided by Consolidated Communications Holdings, Inc.
——————————————
PHASE 1 (SOLD OUT)
Tổng vốn hóa là 3,3 tỷ đô la.Based on the estimated total valuation as of December 31, 2023, the total capitalization of Consolidated is approximately $3.3 billion USD
Mục đích sử dụng nguồn vốn
Consolidated and its affiliates will guarantee the repayment of the loan and ensure the completion of construction. The EB-5 loan will be secured by a senior mortgage and equity interests in all assets of Consolidated.
The entire $80 million EB-5 loan will be spent at locations that qualify as rural areas under the EB-5 program criteria. Several transfer stations will benefit from federal, state, and local funding to expedite expansion in rural and inland regions.
High-speed Internet with fiber-optic installations will be based on existing DSL/copper cable infrastructure, converting them into transfer stations located in the rural geographic areas of New Hampshire, Vermont, and Maine (Northern New England).
Khu vực Bắc New England sẽ là địa điểm lắp internet cáp quang
Northern New England – USA
Demographic Characteristics
Stable Population and Household Growth
GDP Growth with Numerous Fortune 500 Companies
High Average Household Income
All construction areas are part of Consolidated’s existing DSL/copper network. The company’s extensive pole ownership will significantly expedite the upgrade process. Most of the upgrades will be conducted through aerial installations, which will help reduce costs. Approximately 28% of the existing copper cable infrastructure has already been upgraded to fiber-optic.
Fiber-optic broadband Internet offers superior speed and stability compared to cable TV providers, who are Consolidated’s main competitors in Northern New England.
Các doanh nghiệp nổi trội tại 3 tiểu bang
Rich and Diverse Nature
Located in the northeastern part of the continent, bordering Canada and the Atlantic Ocean, this region boasts rich and diverse natural landscapes, from high mountains and deep seas to fertile lands. New England has grown and developed into a leading historical, economic, cultural, educational center, and a renowned tourist destination in the United States. The region features cities with long histories, world-renowned universities, and is surrounded by breathtaking natural scenery.
Hồ Champlain với làn nước trong veo thơ mộng.
State of Vermont
The state of Vermont is enveloped by picturesque and tranquil nature. Burlington, the largest city in Vermont, offers an ideal setting for admiring beautiful scenery, immersing oneself in nature, and escaping the hustle and bustle.
Some renowned attractions in the area include Lake Willoughby, the Mansfield Gondola cable car, farms like Sleepy Hollow and Jenne, and the Stowe Community Church, which attracts many visitors for photography opportunities.
State of New Hampshire
Rừng cây tại bang New Hampshire
The most exquisite stop to admire autumnal beauty in New England, and indeed the entire United States, is often described as the “purest autumnal painting in the world.” Nature here boasts forests adorned in vibrant shades of orange and red, creating a romantic atmosphere accompanied by the rustling sound of fallen leaves underfoot.
Especially during autumn, this city sees the highest influx of tourists, drawn by the melancholic allure of nature’s autumnal beauty. With its white mountain range and the famous Mount Washington, known as the windiest place in the United States, New Hampshire is affectionately referred to as the “Granite State of the White Mountains”.
Maine: Dấu ấn của Châu Âu tại Mỹ
State of Maine
The largest city in the state of Maine is Portland. This urban area features many architectural elements influenced by European styles, dating back to the founding of New England.
Consolidated
Quy mô hoạt động kinh doanh của Consolidated
Consolidated is one of the largest providers of enterprise communication and broadband internet services in the United States. The company is listed on the NASDAQ stock exchange and ranks among the top 10 largest fiber optic providers in the country.
With over 3,000 employees and a business history spanning more than 125 years, Consolidated operates in over 20 states, with a focus on 8 core states: Maine, Vermont, New Hampshire, Texas, Illinois, Pennsylvania, California, and Minnesota.
In 2023, the company recorded revenues of $1.1 billion USD, with pre-tax profit before interest, taxes, and depreciation reaching $319 million USD.
Utilizing an advanced fiber optic network spanning over 60,000 miles and extensive infrastructure, Consolidated offers a wide range of communication solutions, including high-speed internet, data, phone, security, managed services, cloud services, and enterprise marketing solutions.
Consolidated is accelerating its network upgrade process by expanding its DSL-based telecommunications infrastructure to a fiber optic broadband network, transitioning into a pure-play fiber optic company.
Searchlight
Searchlight Capital Partners, the company that acquired Consolidated, is one of the most active investors in the communications sector over the past decade, investing in various segments of the broadband infrastructure ecosystem (cable, wireless, commercial and consumer fiber optics, etc.).
With over $14 billion USD in assets under management (as of December 31, 2023) and over 20 years of experience investing in communication and high-speed internet projects
Searchlight Capital Partners has invested over $2.3 billion USD in FttP (Fiber to the Premises). It is the fourth largest investor in local FttP infrastructure projects in the United States
The company began focusing on digital infrastructure and broadband since former Federal Communications Commission (FCC) Chairman Ajit Pai joined Searchlight Capital as a Partner in 2021.
Consolidated is a key investment in Searchlight’s fiber optic portfolio.
Searchlight intends to provide significant additional equity capital upon completing the acquisition and privatization of Consolidated. This will bring the total committed capital to $1.5 billion USD, making Consolidated more financially flexible to transition into a pure-play fiber optic high-speed internet provider.
Regional Center – CanAm
Developed over 68 projects for EB-5 immigration investment.
Raised a budget of over $3.1 billion.
Returned capital to over 4,500 families with a budget of up to $2.27 billion.
Assisted 15,000 investors in obtaining conditional green cards.
CanAm exclusively operates 7 USCIS-designated Regional Centers. The RCs are located in Philadelphia, Pennsylvania, New York, New Jersey, California, Hawaii, Florida, and Texas.
51 CanAm projects have been fully repaid.
Advantages from the project
Priority EB-5 Designation: The project falls within a priority area for EB-5 application review. This advantage benefits new investors as their applications will be processed earlier compared to previous EB-5 investors
Priority EB-5 Capital Repayment: This is a significant advantage for investors as not all EB-5 projects currently offer prioritized capital repayment.
Strong Government Support: Consolidated actively participates in the BEAD program, which aims to expand high-speed Internet access across all 50 states with a budget of $42.5 billion. Consolidated estimates coverage of up to $8 billion for bidding, including $500 million for the Northern New England region.
High Demand for High-Speed Internet: The robust demand for high-speed Internet is a crucial factor. The expansion of bandwidth in rural, island, and high-cost areas is actively promoted and prioritized.
Designated Rural Area: Being designated as a rural area means fewer competing counterparts.
Strongest Collateral and Guarantees: The parent company of the borrower will provide corporate guarantees to repay the entire EB-5 loan. The EB-5 loan, secured and guaranteed by the benefits from all Consolidated’s assets, holds equal priority with existing senior loans and bonds.
Success from Phase 1: Within just 5 months of launch, all 100 investment slots were sold out.
Advantages from the project developer
Searchlight Capital Partner – a leading private equity investment firm in the US – Consolidated Communications is one of the largest and most significant fiber optic internet projects in Searchlight’s investment portfolio, with an investment of up to $1.5 billion.
Canada’s top pension fund BCI (British Columbia Investment Management Corporation) participates as a shareholder.
Consolidated Communications: Top 10 largest fiber optic providers in the US
Upgrading traditional DSL/copper cable networks to advanced fiber optic networks, enhancing parallel speed while saving costs
Consolidated Communications’ experienced fiber optic construction team has completed nearly 850,000 FttP upgrades in the past three years
Over 40% of current subscribers are fiber optic, with a target conversion rate of 80% by 2028.
CanAm Regional Center with leading achievements in the EB-5 industry::
Raised a budget of over $3.1 billion.
Returned capital to over 4,500 familieswith a budget of up to $2.27 billion.
Assisted 15,000 investors in obtaining conditional green cards.
Over 65 CanAm projectsapproved by USCIS.
The rural high-speed Internet project is CanAm’s 68th project, reflecting its extensive experience in funding and capital raising. The project has also received approval for the I-956F application.
The high-speed Internet project in rural areas commenced its deployment in March 2024 and is scheduled for completion by March 2027.
Rural High-Speed Internet Project: Expanding Broadband Access in Northern New England
The Rural High-Speed Internet Project is the third installment in CanAm’s successful series of high-speed internet projects in Virginia and Texas. This latest project is a collaboration between CanAm Enterprises’ Regional Center and Consolidated Communications, a leading provider of business communications and broadband internet services in the United States. With an investment of $1.5 billion, it is one of the largest and most significant fiber optic internet projects in Northern New England.
EB-5 investment funds will help Consolidated finance the installation of fiber optic broadband over existing DSL/copper cable infrastructure to cell sites located in designated “rural areas” of Northern New England. This project will bring high-speed fiber optic internet to 80,000 homes that currently lack access due to inadequate infrastructure.
CanAm was the first regional center to identify rural broadband EB-5 projects at a time when there was a shortage of high-quality rural EB-5 projects.
The project is currently moving into its second phase after all investment slots in the first phase were filled within just five months of fundraising
EB-5 job requirements are expected to be met through construction expenditures within the first two years. The economic impact study confirms that the project is primarily located in rural areas and will generate sufficient qualifying jobs, significantly exceeding USCIS job creation requirements.
Investment Amount
$800,000 per investor
Loan Term
4 years + 1 + 1 (maximum 6 years)
Collateral & Security
Completion and loan repayment are guaranteed by the parent company. The EB-5 loan will be secured by a senior mortgage and equity interests in all CNSL assets, with equal priority to similar collateral securing existing senior loans and bonds.
Project Capital Structure
PHASE 2(OPEN FOR INVESTMENT)
Based on the estimated total valuation as of December 31, 2023, with $80 million raised from EB-5 investors in Phase 1 and $60 million in Phase 2, the total capitalization of Consolidated is approximately $3.4 billion.
Allocation within Consolidated’s capitalization of approximately $3.4 billion.
As part of the acquisition agreement, Searchlight Capital and its co-investors have committed to investing an additional $300 million in equity to support the company.
The company’s current revenue, existing bank credit facility, and the additional equity investment from Searchlight Capital are sufficient to cover all necessary capital expenditures to complete the company’s fiber-optic transition. Completion guarantees will be provided by Consolidated Communications Holdings, Inc.
——————————————
PHASE 1 (SOLD OUT)
Tổng vốn hóa là 3,3 tỷ đô la.Based on the estimated total valuation as of December 31, 2023, the total capitalization of Consolidated is approximately $3.3 billion USD
Mục đích sử dụng nguồn vốn
Consolidated and its affiliates will guarantee the repayment of the loan and ensure the completion of construction. The EB-5 loan will be secured by a senior mortgage and equity interests in all assets of Consolidated.
The entire $80 million EB-5 loan will be spent at locations that qualify as rural areas under the EB-5 program criteria. Several transfer stations will benefit from federal, state, and local funding to expedite expansion in rural and inland regions.
High-speed Internet with fiber-optic installations will be based on existing DSL/copper cable infrastructure, converting them into transfer stations located in the rural geographic areas of New Hampshire, Vermont, and Maine (Northern New England).
Khu vực Bắc New England sẽ là địa điểm lắp internet cáp quang
Northern New England – USA
Demographic Characteristics
Stable Population and Household Growth
GDP Growth with Numerous Fortune 500 Companies
High Average Household Income
All construction areas are part of Consolidated’s existing DSL/copper network. The company’s extensive pole ownership will significantly expedite the upgrade process. Most of the upgrades will be conducted through aerial installations, which will help reduce costs. Approximately 28% of the existing copper cable infrastructure has already been upgraded to fiber-optic.
Fiber-optic broadband Internet offers superior speed and stability compared to cable TV providers, who are Consolidated’s main competitors in Northern New England.
Các doanh nghiệp nổi trội tại 3 tiểu bang
Rich and Diverse Nature
Located in the northeastern part of the continent, bordering Canada and the Atlantic Ocean, this region boasts rich and diverse natural landscapes, from high mountains and deep seas to fertile lands. New England has grown and developed into a leading historical, economic, cultural, educational center, and a renowned tourist destination in the United States. The region features cities with long histories, world-renowned universities, and is surrounded by breathtaking natural scenery.
Hồ Champlain với làn nước trong veo thơ mộng.
State of Vermont
The state of Vermont is enveloped by picturesque and tranquil nature. Burlington, the largest city in Vermont, offers an ideal setting for admiring beautiful scenery, immersing oneself in nature, and escaping the hustle and bustle.
Some renowned attractions in the area include Lake Willoughby, the Mansfield Gondola cable car, farms like Sleepy Hollow and Jenne, and the Stowe Community Church, which attracts many visitors for photography opportunities.
State of New Hampshire
Rừng cây tại bang New Hampshire
The most exquisite stop to admire autumnal beauty in New England, and indeed the entire United States, is often described as the “purest autumnal painting in the world.” Nature here boasts forests adorned in vibrant shades of orange and red, creating a romantic atmosphere accompanied by the rustling sound of fallen leaves underfoot.
Especially during autumn, this city sees the highest influx of tourists, drawn by the melancholic allure of nature’s autumnal beauty. With its white mountain range and the famous Mount Washington, known as the windiest place in the United States, New Hampshire is affectionately referred to as the “Granite State of the White Mountains”.
Maine: Dấu ấn của Châu Âu tại Mỹ
State of Maine
The largest city in the state of Maine is Portland. This urban area features many architectural elements influenced by European styles, dating back to the founding of New England.
Consolidated is one of the largest providers of enterprise communication and broadband internet services in the United States. The company is listed on the NASDAQ stock exchange and ranks among the top 10 largest fiber optic providers in the country.
With over 3,000 employees and a business history spanning more than 125 years, Consolidated operates in over 20 states, with a focus on 8 core states: Maine, Vermont, New Hampshire, Texas, Illinois, Pennsylvania, California, and Minnesota.
In 2023, the company recorded revenues of $1.1 billion USD, with pre-tax profit before interest, taxes, and depreciation reaching $319 million USD.
Utilizing an advanced fiber optic network spanning over 60,000 miles and extensive infrastructure, Consolidated offers a wide range of communication solutions, including high-speed internet, data, phone, security, managed services, cloud services, and enterprise marketing solutions.
Consolidated is accelerating its network upgrade process by expanding its DSL-based telecommunications infrastructure to a fiber optic broadband network, transitioning into a pure-play fiber optic company.
Searchlight
Searchlight Capital Partners, the company that acquired Consolidated, is one of the most active investors in the communications sector over the past decade, investing in various segments of the broadband infrastructure ecosystem (cable, wireless, commercial and consumer fiber optics, etc.).
With over $14 billion USD in assets under management (as of December 31, 2023) and over 20 years of experience investing in communication and high-speed internet projects
Searchlight Capital Partners has invested over $2.3 billion USD in FttP (Fiber to the Premises). It is the fourth largest investor in local FttP infrastructure projects in the United States
The company began focusing on digital infrastructure and broadband since former Federal Communications Commission (FCC) Chairman Ajit Pai joined Searchlight Capital as a Partner in 2021.
Consolidated is a key investment in Searchlight’s fiber optic portfolio.
Searchlight intends to provide significant additional equity capital upon completing the acquisition and privatization of Consolidated. This will bring the total committed capital to $1.5 billion USD, making Consolidated more financially flexible to transition into a pure-play fiber optic high-speed internet provider.
Regional Center – CanAm
Developed over 68 projects for EB-5 immigration investment.
Raised a budget of over $3.1 billion.
Returned capital to over 4,500 families with a budget of up to $2.27 billion.
Assisted 15,000 investors in obtaining conditional green cards.
CanAm exclusively operates 7 USCIS-designated Regional Centers. The RCs are located in Philadelphia, Pennsylvania, New York, New Jersey, California, Hawaii, Florida, and Texas.
Priority EB-5 Designation: The project falls within a priority area for EB-5 application review. This advantage benefits new investors as their applications will be processed earlier compared to previous EB-5 investors
Priority EB-5 Capital Repayment: This is a significant advantage for investors as not all EB-5 projects currently offer prioritized capital repayment.
Strong Government Support: Consolidated actively participates in the BEAD program, which aims to expand high-speed Internet access across all 50 states with a budget of $42.5 billion. Consolidated estimates coverage of up to $8 billion for bidding, including $500 million for the Northern New England region.
High Demand for High-Speed Internet: The robust demand for high-speed Internet is a crucial factor. The expansion of bandwidth in rural, island, and high-cost areas is actively promoted and prioritized.
Designated Rural Area: Being designated as a rural area means fewer competing counterparts.
Strongest Collateral and Guarantees: The parent company of the borrower will provide corporate guarantees to repay the entire EB-5 loan. The EB-5 loan, secured and guaranteed by the benefits from all Consolidated’s assets, holds equal priority with existing senior loans and bonds.
Success from Phase 1: Within just 5 months of launch, all 100 investment slots were sold out.
Advantages from the project developer
Searchlight Capital Partner – a leading private equity investment firm in the US – Consolidated Communications is one of the largest and most significant fiber optic internet projects in Searchlight’s investment portfolio, with an investment of up to $1.5 billion.
Canada’s top pension fund BCI (British Columbia Investment Management Corporation) participates as a shareholder.
Consolidated Communications: Top 10 largest fiber optic providers in the US
Upgrading traditional DSL/copper cable networks to advanced fiber optic networks, enhancing parallel speed while saving costs
Consolidated Communications’ experienced fiber optic construction team has completed nearly 850,000 FttP upgrades in the past three years
Over 40% of current subscribers are fiber optic, with a target conversion rate of 80% by 2028.
CanAm Regional Center with leading achievements in the EB-5 industry::
Raised a budget of over $3.1 billion.
Returned capital to over 4,500 familieswith a budget of up to $2.27 billion.
Assisted 15,000 investors in obtaining conditional green cards.
Over 65 CanAm projectsapproved by USCIS.
The rural high-speed Internet project is CanAm’s 68th project, reflecting its extensive experience in funding and capital raising. The project has also received approval for the I-956F application.
