Milbank Advises Natixis in Financing for Fiber-Optic Cable Network in Alaska

Milbank, Tweed, Hadley & McCloy LLP has advised French bank Natixis in connection with financing of the first North American Arctic subsea fiber-optic cable network connecting communities in western and northern Alaska.

The project will provide high-speed connectivity to the communities of Nome, Kotzebue, Point Hope, Wainwright, Barrow, and to the major oilfield facilities at Prudhoe Bay on the Beaufort Sea. Phase 1 is scheduled to be in-service in 2017.

The cable project, developed by Anchorage-based Quintillion, is part of a larger fiber-optic venture aiming to connect Asia and Europe via the Alaska and Canadian Arctic. When complete, the Quintillion Subsea Cable System will provide a diverse fiber route out of the United States and between Europe and Asia, and a shorter fiber-optic cable connection between Asia and Europe.

The Milbank team was led by Global Project, Energy and Infrastructure Finance partner Daniel Michalchuk and senior associate Oliver Irwin, Global Corporate partner John Franchini, and associates Sean O’Neill, Vicky Cox and Kathleen Chun.

“Since the advent of the commercially financed independent cable operator model, Milbank has been advising in the subsea cable sector and has been involved in many subsea cable projects around the world,” Mr. Michalchuk said. “We are thrilled to help secure another financing of an intercontinental subsea cable system.”

Mr. Franchini added: “We were pleased to work with Natixis, Quintillion and Cooper Investment Partners LLC on this important and innovative subsea telecommunications cable project. The completion of this financing further highlights the continued interest from sponsors, equity funds and debt financing providers in this expanding asset class – a trend that we expect will continue.”