US B2B fibreco Zayo has closed its upsized private offering of US$500m of 6.375% senior notes due 2025. The company has also announced plans to expand its fibre-to-the-tower (FTT) footprint in San Antonio and Austin in Texas “to serve an anchor wireless service provider”.
US B2B fibreco Zayo (NYSE:ZAYO) has closed its upsized private offering of US$500m of 6.375% senior notes due 2025.
Zayo said in a statement today that it will use the proceeds of the offering, upsized from an initial US$350m on 1 April, and cash on hand to redeem its remaining US$326m of 10.125% senior notes due 2020 and repay about US$197m under its secured term loan facility.
The Boulder-based company, which provides fibre and bandwidth connectivity, co-location and cloud services, was not immediately available for further comment.
In mid-January, Zayo completed its C$465m (US$321.05m) acquisition of Allstream in Canada, making it the first fibre provider to bridge the US and Canada. The company funded the purchase with a US$400m term loan tranche under its existing credit agreement.
Following the closure of the Allstream deal, Zayo said its network in North America and Europe stretches 110,000 route miles.
On 2 April, Zayo closed a $18.9m purchase of Texas colocation and cloud services company Clearview International, which operates two data centres in the state. The company said it now owns and operates seven data centres in Texas and a total 57 facilities in North America and Europe. This deal was financed with cash on hand.
Today, Zayo also announced plans to expand its fibre-to-the-tower (FTT) footprint in San Antonio and Austin in Texas “to serve an anchor wireless service provider”. The company said it would extend its existing network in the two cities by more than 700 miles to provide FTT service to more than 300 towers.