Zayo Group increases term loan B size to roughly $1.75 billion

By Sara Rosenberg

New York, Nov. 21 - Zayo Group LLC upsized its term loan B due July 2, 2019 to $1,749,750,000 from $1,599,750,000, according to a market source.

Pricing on the term loan was left at Libor plus 300 basis points with a 1% Libor floor and a par offer price.

The term loan B still has 101 soft call protection for six months.

The company's now $1,999,750,000 senior secured credit facility, up from $1,849,750,000, also includes a $250 million revolver due July 2, 2017 priced at Libor plus 275 bps, subject to a grid.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets are the joint lead arrangers and bookrunners on the deal. Citigroup Global Markets Inc., Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc. and UBS Securities LLC are the co-managers.

Proceeds will be used to reprice the company's existing credit facility, and the $150 million of incremental term loan debt from the upsizing will be used for general corporate purposes, the source said.

Closing is expected on Tuesday, the source added.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

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