Meridian Capital and Gemspring Capital Partner to Provide Rural Broadband Funding
Published July 21, 2021
Gemspring Capital and Meridian Capital are pleased to announce they have partnered to provide working capital support and facilitate letters of credit for qualified winners of the upcoming FCC Rural Development Opportunity Fund (RDOF) auction.
RDOF is the latest round of government grants designed to bring the benefits of high-speed broadband to rural America. The auction will grant some $21 billion to rural Wireless Internet Service Providers and Fiber Operators. Funds are payable in equal installments over ten years, requiring project completion within six years, along with proof of service availability and quality.
To reduce government risk, operators are required to post letters of credit (LOC) against funds received. The LOC is required a few months before FCC funding starts, when many operators’ historical financials are not sufficient to support the funding necessary to cover both the LOC and initial working capital. Meridian Capital and Gemspring Capital have partnered to address this challenge and provide qualified operators with flexible capital to support compliance with the FCC LC requirement, and enable rapid build-out of their networks.
Geoff Broglio, Gemspring Managing Director commented, “Rural broadband is poised for continued growth, and we are excited to partner with qualified WISPs and Fiber Operators to provide flexible capital and expertise to pursue the significant opportunities presented by RDOF.”
Meridian Capital’s Senior Telecommunication Advisor, Pete Sokoloff adds, “This is the dawn of a golden age for alternative telecom providers. Government grant money, combined with powerful new technologies has created a promising future for the companies who are working to fulfill the universal need for high speed broadband in rural communities.”
Meridian Capital is the exclusive placement agent for RDOF funding support provided by Gemspring Capital.
To learn more about the types of funding available for rural broadband, please listen to a replay of the webinar “Funding RDOF: A webinar for operators presented by Meridian Capital and Gemspring Capital” held on September 10, 2020 (click here to watch).
About Meridian Capital
Meridian Capital, a Seattle-based M&A advisory firm, has served as a trusted advisor to business owners on complex corporate finance, M&A, and strategic challenges for over 20 years. Meridian’s telecommunications practice offers access to industry-wide strategic and financial partner relationships, deep sector expertise, and proven transaction experience to help maximize shareholder value.
About Gemspring Capital
Gemspring Capital is a private equity firm specializing in lower middle market companies. With $1.1 billion of capital under management, Gemspring provides flexible capital and partners with talented management teams to propel companies to grow and achieve their full potential.