US-based fibre network provider Zayo has launched a follow-on 16 million common share offering, priced at US$0.01 per share.
Proceeds from the offering will be used for general corporate purposes, which may include acquisitions, working capital,…
US-based fibre network provider Zayo has launched a follow-on 16 million common share offering, priced at US$0.01 per share.
Proceeds from the offering will be used for general corporate purposes, which may include acquisitions, working capital, capital expenditures and repayment of indebtedness.
The company is offering 4 million shares, while its stockholders are selling 12 million shares.
The underwriters will have the option to acquire up to an additional 2.4 million shares from stockholders.
Goldman Sachs, Barclays and Morgan Stanley are acting as lead joint book-running managers and representatives of the underwriters for the offering. RBC Capital Markets, JP Morgan, Citigroup and SunTrust Robinson Humphrey will also serve as joint book-running managers.
Closes US$730m add-on
The company also closed its previously announced US$730m senior unsecured note offering due 2023 and carrying a 6% interest, through an add-on to its existing issue in a private placement.
Zayo plans to use the proceeds from the offering, which was rated B2 by Moodys, to redeem its US$675m 8.125% senior secured notes due 2020, including premium and accrued interest.
Colorado-based Zayo, which listed on the New York stock exchange last October, controls a 81,000 mile fibre network and serves wireline and wireless operators, data centres, ISPs, high-bandwidth enterprises and government agencies in the US and Europe.
In January, the operator agreed to buy co-location and infrastructure as a service (IaaS) provider Latisys Holdings for US$675m and completed the acquisition of Kansas-based IdeaTek Systems for US$52m in a cash-on-hand deal.
Zayo, which first entered the European market in 2012 with the acquisition of AboveNet for US$2.2bn, has recently ramped up its presence in the continent through the purchase of London-based dark fibre operator Geo Networks and Paris-based bandwidth Infrastructure provider Neo Telecoms in H1 14. The deals were valued at US$293m and US$80m respectively.
