Daily News: March 1, 2013

Morgan Stanley, Others Amend, Re-Price Zayo Credit Agreement


Zayo Group announced that it amended its credit agreement, including the re-pricing of both its term loan and revolving credit facility.

Morgan Stanley, Barclays Capital and RBC Capital Markets served as joint bookrunners and SunTrust, UBS and Goldman Sachs served as co-managers on the term loan re-pricing. SunTrust acted as the agent on the revolving credit facility.

The $1.6 billion term loan facility will bear interest at LIBOR plus 3.5%, with a minimum LIBOR rate of 1%, and was priced at par. Its revolving credit facility remains undrawn and will bear interest at LIBOR plus 3% based on the current leverage level. As a result of the re-pricing, Zayo expects to save approximately $12 million of annual cash interest payments.

In addition, the company amended certain terms and provisions of its credit agreement, including removing the senior secured and total leverage maintenance covenants and increasing its revolving credit facility by $25 million to $250 million through the addition of Citibank, to the lender group.

Louisville, CO-based Zayo Group is an international provider of fiber-based Bandwidth Infrastructure services and carrier-neutral colocation and interconnection services.