Apollo-backed Brightspeed names O'Donnell CEO days after bankruptcy report

Brightspeed named Shawn O'Donnell chief executive on Nov. 2, days after the Wall Street Journal reported that the Apollo Global Management-backed fiber builder is preparing for a possible bankruptcy filing as soon as next month.

O'Donnell succeeds Michel Combes, who had been acting CEO and will remain chairman of the Charlotte-based company. The appointment was effective immediately. O'Donnell was most recently a senior managing director at FTI Consulting, leading its Americas telecom, media and technology practice.

Brightspeed carried $11.6 billion of gross debt at the end of the third quarter, the number debt holders should anchor on, according to New Street Research's David Barden. Barden estimates the company needs to raise about $3 billion to fund itself through 2027.

The Journal reported Brightspeed is seeking new investors through an asset-backed facility secured by subscription cash flows from its new fiber network. That would secure the new lending against the same subscriber cash flows the rest of the capital structure depends on.

Brightspeed has passed more than three million locations with fiber and targets four million by the end of this year. It raised more than $2 billion last year and $3.7 billion in 2024 for the buildout, after paying $7.5 billion for Lumen's incumbent local exchange business across 20 states in 2022.

Combes was appointed CEO of AI cloud firm Lambda in May and remains Brightspeed chairman. Lambda's planned $33.1 billion Alabama data center was previously reported by Private Wealth Daily. The near-term question for lenders is whether the asset-backed facility closes before a filing.