Yellowstone/Bozeman Fiber

On December 21, 2021, KeyBanc Capital Markets (KBCM) closed the non-rated $65 million Industrial Development Revenue Bonds, Series 2021A and Series 2021B, (Bozeman Fiber Project) (the 2021 Bonds) on behalf of Bozeman Fiber (the Company). The 2021 Bonds were issued to finance the costs of constructing an expansion of the Company's fiber optic cable network that is expected to bring, within three years, broadband with the fastest speeds to Bozeman, Montana, its environs and some rural areas, at no cost or risk to taxpayers. The Bozeman Fiber Project will ultimately connect 22,000 homes, businesses, and public buildings in Bozeman and adjacent areas by 2024. These areas are currently unserved or underserved by internet service providers (ISPs). KBCM served as Sole Manager for the 2021 Bonds.

This unprecedented transaction is secured solely by the net revenues generated by the Yellowstone Fiber Network. Historically, bonds that fund digital infrastructure have been secured by revenue streams other than a project’s net revenues, such as electric utility revenues or sales or property taxes. However, the operational partnership between Bozeman Fiber and Utah’s UTOPIA Fiber, combined with other factors, allowed for the success of this unique approach to meeting Yellowstone Fiber’s financing needs. The structure of the transaction coupled with its successful execution is a landmark that is anticipated to serve as a national model for 21st‑century open‑access broadband infrastructure and connectivity.