Puerto Rico’s QMC Telecom secures US$115mn in fresh financing

Puerto Rico-based mobile wireless infrastructure group QMC Telecom secured US$115mn through two credit lines to provide extra liquidity and finance its operations.

The loans add to a 1.25bn-real (US$250mn) bond issuance by QMC’s Brazilian subsidiary last December.

The fresh funds come at a time when the company is reportedly sounding out the market about new investors entering its operations, sources have told BNamericas. According to these sources, talks with the market have been going on for several months.

At present, QMC’s main investors are Accel Partners, Housatonic Partners, Quadrant Capital Advisors and TTCER Partners.

In a release, QMC said that proceeds from the new transactions will be used to “support the company's 5G network infrastructure investments and its commitment to enable connectivity in the communities where it operates.”

The facilities came from Deutsche Bank, IDB Invest and Proparco.

The first, a four-year US$50mn loan, was delivered by Deutsche Bank's US Private Credit and Infrastructure team. 

QMC Telecom said that this loan is aimed at providing “additional liquidity for growth investments” in its operating subsidiaries and general corporate expenses. 

A second credit agreement was a multi-country and multi-currency facility secured from IDB Invest and Société de Promotion et de Participation pour la Coopération Economique (Proparco), a private sector lender of the French government. 

This agreement is an extension of the existing US$49mn facility signed with IDB Invest in 2021, plus an additional US$16mn commitment from Proparco, totaling US$65mn and covering the 2024-25 period, the company said.

The IDB/Proparco resources will be used to support infrastructure investments in Mexico, Colombia, and Peru, according to QMC.

"Together with IDB Invest, which is leading the transaction, Proparco is very proud to participate in financing the 2024-2025 investment program of QMC, a leading digital wireless infrastructure company in Latin America. By developing neutral, open, and pooled infrastructures, QMC is offering more accessible and affordable digital services in Latin America, helping to bridge the digital gap in the region," Françoise Lombard, CEO of Proparco, said in the statement.

Rafael Somoza, QMC's CEO and co-founder, said: "The combination of these two multi-jurisdiction credit facilities provides QMC with the necessary flexibility to continue growing our digital wireless infrastructure platform in Latin America." 

"We remain committed to our vision of fostering growth, enabling connectivity, and solving client needs as we stay focused on our mission to be the indispensable partner in 5G network densification," he added.

According to CFO Ricardo Zubieta, the successful loans highlight "QMC's 12-year track record of uninterrupted profitable growth and disciplined capital allocation."

He also said that they underscore QMC's ability to access the market even in challenging macro environments.

White and Case LLP served as legal counsel to Deutsche Bank, and Sidley Austin LLP as QMC's legal counsel. 

For the Mexico, Colombia, and Peru loans, Morrison and Foster LLP acted as lead legal counsel for IDB Invest and Proparco, and Locke Lord LLP served as QMC's lead legal counsel.

Founded in San Juan in 2011, QMC develops, owns, acquires and manages rooftops, macro sites, indoor DAS, and Street Level Solutions in Brazil, Colombia, Mexico, Peru and Chile.