CityFibre, the largest independent alternative broadband network operator in the United Kingdom, is preparing to seek a multibillion-pound refinancing package aimed at accelerating its expansion and consolidation efforts in the broadband sector. The company, which competes with BT’s Openreach, plans to present proposals this week for new capital injections involving a mix of “preferred” equity and debt. This restructuring would see lenders convert portions of their existing debt into equity, with the new funding structured to have priority over current debt in case of company failure.

The refinancing plan is expected to include around £900 million in fresh equity from major shareholders such as Goldman Sachs Group, Antin Infrastructure, Mubadala Investment, and Interogo Holding. CityFibre’s backers also include Goldman Sachs and the Abu Dhabi sovereign wealth fund. The initiative follows a £2.3 billion funding round secured last year, which notably received support from Britain’s National Wealth Fund, helping to stabilize the company amid earlier financial uncertainty.

The move comes as CityFibre seeks to capitalize on recent developments in the industry, including regulatory challenges faced by competitors. This week, the UK’s Competition and Markets Authority (CMA) indicated it might block a £2 billion acquisition of Netomnia, one of the country’s largest alternative broadband providers, by a joint venture supported by Virgin Media O2’s owners. This potential blockage reopens opportunities for CityFibre to acquire rival companies and expand its market presence.

CityFibre reportedly has shown interest in acquiring other challenger networks, including Community Fibre, which operates primarily in London and is backed by Warburg Pincus, as well as Hyperoptic, majority-owned by private equity firm KKR. Industry analysts view any such acquisitions as a potential catalyst for consolidation within the broadband infrastructure sector, which has been increasingly stressed by higher interest rates in recent years. Estimates from Enders Analysis indicate that the sector has accumulated approximately £9 billion in total debt.

Despite its growth ambitions, CityFibre remains heavily loss-making. The company reported a statutory pre-tax loss of £545 million last year, a significant increase from £360 million in 2024. This deterioration is largely attributed to rising financing costs, with CityFibre incurring £288 million in interest expenses on £3.8 billion of debt during the same period.

CityFibre operates by leasing its full-fibre network to internet service providers such as TalkTalk, Vodafone, and Sky, rather than retailing broadband services directly to consumers. The company has built infrastructure reaching 4.8 million premises and has set a target of servicing eight million locations by 2030. Founded in 2011 by Greg Mesch, its former chief executive, CityFibre is recognized as the oldest and largest of the “altnet” operators challenging incumbent networks like Openreach and Virgin Media O2 in the rollout of high-speed broadband across the UK.