Lyte Fiber closes $175M credit facility to fuel Texas broadband buildout
What's the deal? Lyte Fiber, a Houston-based fibre-to-the-home provider, has closed its first-ever debt financing — a $175M construction loan facility to accelerate expansion of its fibre network across Texas. The facility, which includes both a term loan and a revolving line of credit, will fund buildouts in nearly 20 concurrent markets across the state.
CIBC Bank USA led the transaction as administrative agent, with Third Coast Bank as co-syndication agent. Hancock Whitney Bank, Celtic Bank, and Woodforest National Bank also participated as joint lead arrangers.
Why now? Founded in 2023 with backing from digital infrastructure investor SDC Capital Partners, Lyte Fiber has been scaling quickly and needed a capital structure to match. The company is building in both privately funded and government grant-supported markets — timing that aligns with the ongoing rollout of federal and state broadband programmes targeting underserved communities.
"This inaugural debt raise is a defining moment for Lyte Fiber," said chief executive officer Carter Old. "It is a tremendous vote of confidence in our management team, progress to date, and future growth plans."
The facility also includes a "significant accordion feature," meaning Lyte can expand the borrowing capacity over time without renegotiating the entire deal.
What could go wrong? Fibre buildouts are capital-intensive and slow to generate returns, especially in underserved areas where customer density may be low. Grant-funded projects come with regulatory strings and timelines that can complicate execution. And Lyte faces competition from incumbents and other fibre overbuilders racing to wire the same fast-growing Texas communities.
The signal: The deal reflects continued lender appetite for fibre infrastructure debt, even as interest rates remain elevated. Regional fibre builders across the US are stacking capital — both equity and debt — to capture demand driven by remote work, streaming, and government broadband subsidies. Lyte's ability to secure a multi-bank facility at this stage suggests confidence in the long-term economics of fibre in high-growth Sun Belt markets.
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