Backbone operator Zayo Group has amended its credit agreement to expand its term loan facility by US$275m to US$2.015bn.
Barclays, RBC Capital Markets and Morgan Stanley served as joint bookrunners on the offering.
The add-on will bear interest at the…
Backbone operator Zayo Group has amended its credit agreement to expand its term loan facility by US$275m to US$2.015bn.
Barclays, RBC Capital Markets and Morgan Stanley served as joint bookrunners on the offering.
The add-on will bear interest at the same rate as the existing facility, which is Libor plus 3%, with a Libor floor of 1%, and priced at 99.5.
Zayo previously increased the size of the facility by US$150m late last year to US$1.75bn, and managed to cut the interest it pays on its revolver.
Zayo upped its loan facility from US$1.6bn to US$1.75bn and lowered the interest rate from Libor plus 3.5% to Libor plus 3%. The loan re-priced at par.
Zayo said US$150m of the proceeds would repay borrowings on its revolving credit facility, which it drew to help fund its acquisition of UK dark fibre operator Geo Networks.
The remaining proceeds will be used to fund Zayo’s US$80m acquisition of French backbone operator Neo Telecoms in April, which is expected to close at the start of July.
In early May Zayo was reported to have hired banks to prepare an initial public offering of the company’s stock.
Barclays and Morgan Stanley were said to have been mandated for the float, which could value the company at US$7bn, according to a newswire.
Colorado-based Zayo was founded in 2007 and offers wholesale services to consumer-facing telcos. It operates a 75,000 mile-plus fibre network which serves thousands of towers and hundreds of data centres and carrier PoPs.
Zayo says its network connects 14,196 buildings in 297 markets and that it has particularly strong connectivity in the United States and London.
