BT Fiber Challenger Gigaclear Lines Up £1.5 Billion New Debt

The British fiber-optic network challenger Gigaclear Ltd. has lined up £1.5 billion ($1.9 billion) in new debt financing just as the broader industry is bracing itself for stiffer competition and an era of mass consolidation.

Gigaclear, which is focused on building fiber in rural communities, said it would use the financing to reach its goal of serving more than 1 million homes by 2027, challenging former state monopoly BT Group Plc. The credit line is for an upfront facility of £1 billion, which the company has the option of increasing by another £500 million, according to a statement.