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Zayo touts ‘stable’ balance sheet; leverage is within targeted range
By Devika Patel
Knoxville, Tenn., Aug. 21 – Zayo Group Holdings Inc. has a “largely stable” balance sheet and its 4.5x leverage ratio is within the company’s targeted range.
The company did a refinancing in the quarter ended June 30, repaying about $300 million of floating-rate debt with proceeds from a fixed-rate senior notes sale.
“[Our balance sheet is] largely stable with leverage within our targeted range at 4.5x,” chief financial officer Ken desGarennes said on the company’s fourth quarter and fiscal 2017 year-end earnings conference call on Monday.
“At the end of the quarter, we did repay approximately $300 million of near-term floating-rate debt with incremental 10-year senior unsecured fixed-rate notes,” he said.
The company reported adjusted EBITDA of $310.8 million for the fourth fiscal quarter of 2017.
On June 29, Zayo and Zayo Capital, Inc. priced a $300 million add-on to their 5¾% senior notes due Jan. 15, 2027 (B3/B) at 104.25 to yield 5.063%.
Morgan Stanley & Co., Barclays, Goldman Sachs & Co., RBC Capital Markets LLC, Citigroup Global Markets Inc., JP Morgan Securities LLC and SunTrust Robinson Humphrey were the joint bookrunners.
Zayo Group LLC paid down a portion of its $1,429,925,000 senior secured covenant-light term loan B-2 due Jan. 19, 2024 with the proceeds.
Post paydown, the term loan B-2 was sized at $1,119,275,000.
Zayo also carried out a repricing that took the existing term loan B-2 due 2024 down from Libor plus 250 bps with a 1% Libor floor.
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.
Zayo is a Boulder, Colo.-based provider of communications infrastructure services.
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