Published on 1/12/2017 in the Prospect News High Yield Daily.
New Issue: Zayo prices $800 million 10-year notes at par to yield 5¾%
By Paul A. Harris
Portland, Ore., Jan. 12 – Zayo Group, LLC and Zayo Capital, Inc. priced an $800 million issue of 10-year senior notes (B3/B) at par to yield 5¾% on Thursday, according to a syndicate source.
The yield printed on top of yield talk that had been set in the 5¾% area. Early guidance had the deal coming with a yield in the high 5% range, a trader said.
Morgan Stanley & Co., Barclays, SunTrust Robinson Humphrey, RBC Capital Markets LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. and JPMorgan Securities LLC were the joint bookrunners.
The Boulder, Colo.-based provider of communications infrastructure services plans to use the proceeds to help fund its acquisition of Electric Lightwave, formerly known as Integra Telecom, a Vancouver, Wash.-based provider of infrastructure and telecom services.
| Issuer: | Zayo Group, LLC and Zayo Capital, Inc.
|
| Amount: | $800 million
|
| Maturity: | Jan. 15, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley, Barclays, SunTrust, RBC, Citigroup, Goldman Sachs, JPMorgan
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 340 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2022, then callable at 102.875
|
| Equity clawback: | For 40% at 105.75 until Jan. 15, 2020
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 27
|
| Ratings: | Moody’s: B3
|
| Standard & Poor’s: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¾% area
|
| Marketing: | Quick to market
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
