Moody's rates Zayo loan B1, notes B1 & Caa1

Moody's Investors Service said it confirmed the B2 corporate family and probability of default ratings of Zayo Group LLC following the financing details of the company's $2.2 billion acquisition of AboveNet.

Moody's also assigned B1 (LGD3-40%) ratings to Zayo's proposed $1.75 billion senior secured credit facility and $750 million senior secured notes and a Caa1 (LGD6-91%) rating to the company's proposed $500 million senior unsecured notes.

Zayo will use the proceeds of these offerings to repay existing debt and to finance the acquisition of AboveNet.

Moody's has also assigned an SGL-3 speculative grade liquidity rating based on Zayo's expected adequate liquidity position following the capital raise and ongoing acquisition transactions.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.