By Paul A. Harris
Portand, Ore., Jan. 20 – Zayo Group, LLC and Zayo Capital, Inc. priced a $700 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 6% on Tuesday, according to an informed source.
The yield printed at the tight end of the 6% to 6¼% yield talk.
Goldman Sachs & Co. was the left bookrunner. Barclays, Morgan Stanley & Co. LLC and RBC Capital Markets Corp. were the joint bookrunners.
Proceeds will be used to fund the acquisition of Latisys Holdings LLC, an Englewood, Colo.-based data center company, with any excess proceeds to be used for general corporate purposes, which may include debt repayment, acquisitions, working capital and capital expenditures.
Zayo is a Boulder, Colo.-based fiber-based provider of bandwidth infrastructure in the United States and Europe.
| Issuers: | Zayo Group, LLC and Zayo Capital, Inc.
|
| Amount: | $700 million
|
| Maturity: | April 1, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | Barclays, Morgan Stanley & Co. LLC, RBC Capital Markets
|
| Co-manager: | SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| First call: | April 1, 2018 at 104.5
|
| Trade date: | Jan. 20
|
| Settlement date: | Jan. 23
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6% to 6¼%
|
| Marketing: | Quick to market
|
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