Private equity firm EQT and Canadian pension fund Omers have proposed increasing their investment in Deutsche Glasfaser to nearly €5bn to prevent lenders from seizing control of the struggling German broadband provider. The investors, who already injected €4bn into the company, plan to contribute about €850mn in preferred equity while lenders would add €400mn in new super-senior debt.

EQT and Omers were forced to make this move after failing to find alternative backers for Glasfaser, which carries over €7bn in gross debt. The two investors acquired the German internet business from KKR in 2020 for €2.8bn, with EQT holding a 51% stake. Their previous €1.7bn refinancing proposal was rejected by creditors, who threatened to take control during negotiations.

The refinancing would significantly reshape Glasfaser's capital structure, shifting more debt to the holding company level than the previous proposal. Founded in 2011, Glasfaser is Germany's second-largest fiber broadband provider serving 2.6mn homes, though it has struggled to meet its original goal of connecting 6mn homes by 2032.