Published on 3/4/2015 in the Prospect News High Yield Daily.
New Issue: Zayo’s $730 million tap of 6% notes due 2023 prices at 101 to yield 5.796%
By Paul A. Harris
Portland, Ore., March 4 – Zayo Group, LLC and Zayo Capital, Inc. priced a $730 million add-on to their 6% senior notes due April 1, 2023 (existing ratings Caa1/CCC+) at 101 to yield 5.796% on Wednesday, according to an informed source.
The reoffer price came at the cheap end of price talk in the 101.25 area.
Joint bookrunner Barclays will bill and deliver. Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were also joint bookrunners.
Proceeds will be used to fund the redemption of the company’s 8 1/8% senior secured notes due Jan. 1, 2020 and for general corporate purposes.
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.
|
| Face amount: | $730 million
|
| Proceeds: | $737 million
|
| Maturity: | April 1, 2023
|
| Security description: | Add-on to 6% senior notes due April 1, 2023
|
| Bookrunners: | Barclays (bill and deliver) Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Coupon: | 6%
|
| Price: | 101
|
| Yield to worst: | 5.796%
|
| First call: | April 1, 2018 at 104.5
|
| Trade date: | March 4
|
| Settlement date: | March 9 with accrued interest
|
| Existing ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 101.25
|
| Marketing: | Quick to market
|
| Original issue: | $700 million priced at par on Jan. 20, 2015
|
| Fungibility: | Add-on notes will become immediately fungible with the original notes
|
| Total issue size: | $1.43 billion
|
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