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Zayo discloses price talk on $5.06 billion equivalent of term loans
By Sara Rosenberg
New York, Feb. 5 – Zayo Group Holdings Inc. released price talk on its $5.06 billion equivalent of term loans (B1/B) with its New York bank meeting on Wednesday, according to a market source.
The $4,235,000,000 seven-year covenant-lite first-lien term loan is talked at Libor plus 325 basis points with a 0% Libor floor and an original issue discount of 99.5, and the $825 million euro equivalent seven-year covenant-lite first-lien term loan is talked at Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99.5, the source said.
Both term loans have 101 soft call protection for six months.
A bank meeting for European investors will take place at 7:30 a.m. ET in London on Thursday.
Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are the lead arrangers on the deal. BNP Paribas Securities Corp., Citizens Bank, CoBank, Fifth Third, ING, MUFG, Natixis, Nomura and Bank of Nova Scotia are the co-managers.
Commitments are due at 5 p.m. ET on Feb. 19 for the U.S. loan and at noon ET on Feb. 19 for the euro loan.
Proceeds will be used to help fund the buyout of the company by Digital Colony Partners and the EQT Infrastructure IV fund for $35.00 in cash per share in a transaction valued at $14.3 billion, including the assumption of $5.9 billion of Zayo’s net debt.
Closing is expected in the first half of this year, subject to customary conditions, including regulatory clearance and Zayo shareholder approvals.
Zayo is a Boulder, Colo.-based provider of mission-critical bandwidth to companies.
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