Italian broadband provider Eolo SpA is in advanced discussions with Apollo Global Management over a roughly €500m private debt package aimed at refinancing its existing liabilities, according to a report by Bloomberg citing unnamed people familiar with the matter.
The proposed financing would replace Eolo’s current capital structure, which includes €375m of high-yield bonds and a €140m revolving credit facility, both due in 2028. The discussions reflect a broader shift among leveraged borrowers toward private credit solutions as an alternative to public bond markets, particularly for lower-rated issuers facing refinancing pressure.
Partners Group, which acquired a majority stake in Eolo in 2021 in a deal valuing the business at more than €1.2bn, has repeatedly supported the company with additional equity injections as it continues to invest heavily in network expansion.
Eolo operates a fixed wireless access and fibre-to-the-home broadband network across Italy, but its capital-intensive growth strategy has contributed to elevated leverage and ongoing cash burn. Analysts have noted that while the company maintains a strong competitive position and stable customer base, its funding needs remain significant due to continued infrastructure investment requirements.
Ratings agency Moody’s has maintained a B3 credit rating on Eolo, citing high leverage and substantial capital expenditure needs, despite its established market position. Market pricing of its outstanding bonds, currently trading below par, also reflects investor caution around its refinancing trajectory.
