This project financing is to fund a long-haul new Fiber Pipe build running North-South, and covering the core Midwest region of the United States. The Capex estimated is in excess of $1 Billion, using a 80/20 debt to equity capital structure as a Project Finance SPV. The investor(s) will be co-investing with the Prime user of the Fiber strands, and entering into a revenue-sharing model for additional strand leases, with minimum tenant lease terms of 10 years plus extension terms. Minimum mileage segments for lease will be established to meet investor return targets. The demand for usage is expected to be high across the ten main States regions. The user of dark fiber strands includes Carriers, Broadcast companies, Internet companies, Federal and State Agencies, First Responders, FM Radio stations, and others. Major Construction and Engineering firm assessments will be used to finalize Capex requirements. The time to build is estimated at 2 years, as expedited Permitting will exist. The estimated mileage for the Fiber line is over 5,000 miles.
Endeavor Advisory Group has been retained as exclusive advisor for a $1 billion project financing mandate for North American Railway.