Stonepeak Infrastructure Partners invests in wireless connectivity company

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Stonepeak Infrastructure Partners invests in wireless connectivity company

Digital Bridge Holdings and Stonepeak Infrastructure Partners have committed or arranged for over US$1 billion in a recapitalization of the US firm ExteNet Systems.

ExteNet Systems, Inc. designs, builds, owns and operates distributed networks for use by wireless carriers and venue owners in key strategic markets.

Under the recapitalization the interests of existing investors will be acquired and additional capital will be provided to support the long-term growth of the business. It will enable ExteNet to continue pursuing strategic deployment of outdoor and indoor distributed networks.

Key members of the ExteNet Executive Management Team, including co-founder and CEO Ross Manire, will remain with the company and continue to be investors in it. Digital Bridge CEO Marc Ganzi will assume the position of Chairman of the Board at ExteNet after the closing of the transaction. Also joining Mr. Manire on the Board will be Warren Roll of Digital Bridge and Trent Vichie and Brian McMullen of Stonepeak.

SunTrust Robinson Humphrey is the administrative agent for debt financing for the transaction. In addition to SunTrust, the bank syndicate includes Barclays Bank, Deutsche Bank, Toronto-Dominion Bank, CIT Finance LLC and the Royal Bank of Canada.

TAP Advisors served as financial advisors to the company and the selling shareholders.Reed Smith LLP provided legal representation to ExteNet, and Paul, Weiss, Rifkind, Wharton & Garrison LLP represented ExteNet's preferred stockholders in connection with the transaction.  Digital Bridge and Stonepeak were represented by Simpson, Thacher & Bartlett LLP.

Ross Manire, co-founder and CEO od ExteNet, stated

"Our current institutional investors - Columbia Capital, Centennial Ventures, Sevin Rosen Funds, CenterPoint Ventures, Palomar Ventures, Quantum Strategic Partners Ltd (a private investment vehicle managed by Soros Fund Management), and SBA Communications - have been instrumental in assisting the business in its development from early concept stage to the significant enterprise of today.  We greatly appreciate their years of support and guidance."

"Distributed networks, including Small Cells and DAS, are multi-billion dollar opportunities today and are projected to grow at more than 25 percent compounded annually. We are now well positioned to both execute our long-term growth plans and also meet the future needs of communications carriers across our target market segments. After a great run with our initial venture investor group who started with us ten years ago and the other significant investors who joined in 2010, Digital Bridge and Stonepeak are the ideal partners for this recapitalization. "

Digital Bridge CEO Marc Ganzi commented:

"We are thrilled to announce our investment in ExteNet Systems. We see a lot of synergies between ExteNet and our other portfolio companies, including Vertical Bridge which is the largest private tower company in the United States. We have a positive investment outlook on the overall communications infrastructure sector, including Small Cells, in North America and are especially excited by the long-term growth potential of ExteNet."

Mr. Vichie, co-founder and Senior Managing Director at Stonepeak added:

"We manage a well-diversified portfolio with strategic investments in the Telecom, Transport, Power and Energy sectors. We focus on companies with strong management teams, healthy financials and a long term growth outlook. Our investment in ExteNet is a testament to their leadership in the growing Small Cell market."

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