Zayo launches roughly $2 billion term loan at Libor plus 275 bps

By Sara Rosenberg

New York, April 27 – Zayo Group LLC held a call at 2 p.m. ET on Monday to launch a $1,995,404,032 seven-year senior secured covenant-light term loan B that is talked at Libor plus 275 basis points with a 0.75% to 1% Libor floor and a par issue price, according to a market source.

The loan has 101 soft call protection for six months, the source said.

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

Proceeds will be used to reprice the company’s existing $1,995,404,032 term loan and amend the maturity, and other covenants and provisions.

Commitments are due on Thursday, and closing is expected on May 5, the source added.

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

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