Connect Holding II LLC

Overview Key strengths Key risks Favorable growth prospects due in part to increasing demand for high-speed broadband. Secular industry pressures from legacy products and aggressive competition from cable will constrain top-line growth in the near term. Financial sponsor support of future fiber deployments. Elevated S&P Global Ratings-adjusted leverage with limited prospects for improvement over the next couple of years. Execution risk associated with the fiber expansion strategy. Significant negative free operating cash flow (FOCF) because of high capital spending to upgrade its network. We expect Brightspeed will spend around $1 billion annually through 2025 to accelerate the transition of its primarily copper-based network to fiber-to-the-home (FTTH). This will lead to large FOCF deficits of around $1 billion per year through

...Connect Holding II LLC's (doing business as Brightspeed) FTTH investments will lead to significant negative FOCF for the next several years. We expect Brightspeed will spend around...

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