S&P gives B+ to Zayo loan

Standard & Poor’s said it assigned its B+ issue-level rating to Zayo Group LLC’s amended and extended $2 billion senior secured term loan B due 2022. The recovery rating on the debt is 2, indicating an expectation for substantial (70%-90%; the upper end of the range) recovery for lenders in the event of a default.

The existing term loan B is set to mature in July 2019. In addition to the extension, Zayo is seeking the removal of existing financial maintenance covenants and lower pricing, which will modestly reduce annual interest expense.

S&P said the B corporate credit rating on Zayo is unchanged, and the outlook remains stable.

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