People familiar say CityFibre Infrastructure Holdings Ltd. wants lenders to forgive part of an about £2 billion loan in return for an equity stake, and to allow interest on what's left to be capitalized through additional borrowing rather than paid in cash. Earlier this week, the owners of the largest independent fiber competitor to BT Group's Openreach briefed their creditor group on the proposal; CityFibre declined to comment on the talks.
Under the plan, a chunk of the remaining debt would remain at the operating unit, with another portion being pushed up to the holdco. Representatives for Goldman Sachs Group Inc., Antin Infrastructure Partners SA and Mubadala Investment Co. declined to comment. Interogo Holding did not immediately respond.
Reaching a deal with lenders is a prerequisite for stakeholders including Goldman Sachs, Antin, Mubadala and Interogo to add £900 million to support expansion and acquisitions, as reported in July. The new money would arrive at the holding company as a shareholder loan, pari passu with the share of the approximately £2 billion loan slated to be upstreamed to the holdco, the people said.
A recent filing from the holding company reported roughly £3.81 billion in bank borrowings outstanding at end-2025, maturing in June 2029. The group's pre-tax net loss increased to £545 million for the year, up from £360 million in the previous period. Earlier acquisitions have been hindered by CityFibre's debt pile, and pressure is building to secure agreements with lenders and potential targets or risk creditors taking control as soon as next year.
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According to the people, Chief Executive Officer Simon Holden informed investors that Netomnia Ltd. is his top pick to grow CityFibre's UK footprint and that he is contemplating reviving an offer before the year is over. CityFibre previously lost out to rival Nexfibre in last year's Netomnia auction, and regulators are now reviewing Nexfibre's proposed £2 billion deal after the UK's Competition and Markets Authority issued initial findings. Netomnia didn't immediately reply to a request for comment.
Other possible deals include Community Fibre Ltd. and Hyperoptic Ltd., and these options are not mutually exclusive, the people said. Community Fibre declined to provide a comment. Hyperoptic did not respond right away.
Alternative network operators emerged in the 2010s to plug holes in Openreach's footprint, but many borrowed heavily to roll out infrastructure and now confront an overcrowded UK broadband arena, with fixed wireless and mobile services adding pressure. Private equity owners and creditors are pushing for tie ups as borrowing costs stay elevated. If CityFibre cuts a deal with lenders and secures new funding, it could rejoin the consolidation push.
If not, creditors could be in the driver's seat as soon as next year. Either way, who owns the lines to your home and where long term infrastructure capital flows next is on the line.
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