Zayo Group discloses talk on $1.84 billion credit facility repricing

By Sara Rosenberg

New York, Feb. 12 - Zayo Group LLC released price talk on the repricing of its $1,837,000,000 credit facility with its Tuesday call, according to a market source.

The $225 million revolver due July 2, 2017 is talked at Libor plus 300 basis points with no Libor floor, and the $1,612,000,000 term loan B due July 2, 2019 is talked at Libor plus 325 bps with a 1% Libor floor and a par offer price, the source said.

The repriced term loan B has 101 soft call protection for one year.

With the repricing, the company is taking the term loan B down from Libor plus 400 bps with a 1.25% Libor floor.

In addition, the company launched an amendment to remove the maximum senior secured and total leverage ratio covenants, the source continued. The fixed charge coverage ratio covenant will remain in place.

Consents are due on Feb. 19 and closing is expected on Feb. 22.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets are the lead banks on the deal.

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

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