Zayo Group to repay some term loan B-2 borrowings with notes proceeds

By Sara Rosenberg

New York, June 29 – Zayo Group LLC plans to pay down a portion of its $1,429,925,000 senior secured covenant-light term loan B-2 due Jan. 19, 2024 with proceeds from a $300 million add-on senior notes offering, according to a market source.

Post paydown, the term loan B-2 will be sized at $1,119,275,000, the source said.

Also, syndication of a repricing of the term loan B-2 wrapped at initial terms of Libor plus 225 basis points with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

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

The repricing will take the existing term loan B-2 due 2024 down from Libor plus 250 bps with a 1% Libor floor.

Closing on the repricing is expected on July 20.

Zayo is a Boulder, Colo.-based provider of communications infrastructure services.

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