Shenandoah Telecommunications Company has issued $567.4 million in secured fiber‑network revenue term notes through its newly formed subsidiary, Shentel Issuer, LLC. The notes are backed by fiber‑network assets and customer contracts in Virginia, Ohio, Pennsylvania, Indiana, and Maryland, and are scheduled to mature in December 2030.
Proceeds will be used to retire existing term loans and fund general corporate purposes, including continued investment in the company’s Glo Fiber expansion. Shentel’s total debt stood at $535.4 million as of September 30 2025, and the new notes will replace higher‑rate term debt, improving the company’s debt‑to‑equity ratio from 0.47 to a lower level and reducing its debt‑to‑EBITDA ratio from 4.73 to a more sustainable figure.
The notes carry a coupon rate that has not yet been disclosed publicly, and credit rating agencies have not assigned a rating to the issuance. The longer maturity and asset‑backed structure are expected to lower Shentel’s weighted‑average cost of capital and extend the debt profile, providing greater financial flexibility for future growth.
Shenandoah’s focus on fiber has accelerated since the sale of its wireless assets to T‑Mobile in 2021 and the acquisition of Horizon Telcom in 2024. The new financing supports the company’s aggressive Glo Fiber rollout, which aims to pass 600,000 homes by the end of 2026 and expand commercial fiber services across its eight‑state footprint.
Management highlighted the strategic benefits of the transaction. CEO Christopher E. French noted that the company’s second‑quarter results reflected solid Glo Fiber growth and that the new notes would help maintain profitability while funding further expansion. Incoming CEO Ed McKay emphasized the need to drive customer growth and complete the construction phase of Glo Fiber, underscoring confidence in the long‑term revenue stream from the company’s fiber assets.
With liquidity of $212.6 million as of September 30 2025, the securitization strengthens Shentel’s balance sheet and positions the company to capitalize on rising demand for high‑speed broadband, while reducing debt service costs and supporting its fiber‑first strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.