Cogent Communications Details $750M Secured Refi Plan, Data Center Sale Talks at JPM Credit Conference

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Sat, March 7, 2026 astatine 2:06 PM CST 8 min read

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$750 cardinal secured refinancing: Cogent outlined a four-step restructure—moving IRU liabilities, splitting and selling North America/Western Europe leases (about $569M) to its Infrastructure unit, past a 10‑year leaseback treated arsenic an operating lease—to alteration replacing $750M of unsecured indebtedness with secured indebtedness and nutrient a pro forma 3.91x secured leverage.
Capital controls and optional plus sale: The institution chopped its dividend by 98% to $0.02/share and paused worldly buybacks until nett leverage reaches 4x, and it volition voluntarily perpetrate proceeds from a non‑binding LOI to merchantability 10 information centers (buyer involvement reportedly >$144M) to bolster Group credit, though the merchantability is not required for the refinancing.
Wavelength (Waves) maturation target: Cogent inactive targets a $500M Waves run‑rate by mid‑2028 contempt Waves generating ~$40M past year, citing a expanded footprint (1,096 targeted information centers, 518 delivered sites), 100% YoY Waves maturation past year, and a North American TAM of astir $2B.
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Cogent Communications (NASDAQ:CCOI) CEO and laminitis Dave Schaeffer outlined a planned indebtedness refinancing and related structural changes during remarks astatine J.P. Morgan’s Credit Conference successful Miami, describing steps the institution has taken to summation secured borrowing capableness and fortify collateral for lenders. Schaeffer besides provided updates connected Cogent’s erstwhile Sprint assets, a imaginable information halfway merchantability process, and advancement successful the company’s wavelength (“Waves”) business.

Schaeffer said Cogent has been a high-yield issuer since 2010, with indebtedness issued astatine the “Cogent Group” level beneath the nationalist holding company. He described a operation successful which Cogent Holdings sits supra 2 parallel subsidiaries: “Group,” which houses operations and the high-yield debt, and “Infrastructure,” which holds a abstracted acceptable of assets and liabilities including an asset-backed securitized IPv4 leasing concern with $380 cardinal of ring-fenced debt.

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At the borrower radical wherever high-yield bondholders person claims, Schaeffer listed 3 tranches of debt: $623 cardinal of capital/finance lease obligations (IRUs), $600 cardinal of secured debt, and $750 cardinal of unsecured debt. He said the indentures restrict indebtedness based connected secured leverage (no much than 4x), full leverage including unsecured (no much than 6x), and a 2x indebtedness work sum test.

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