Zayo Group announced it completed the amendment of its credit agreement, including an add-on and re-pricing of its term loan and re-pricing of its revolving credit facility. Morgan Stanley, Barclays Capital and RBC Capital Markets served as joint bookrunners; Citigroup, Goldman Sachs, SunTrust and UBS served as co-managers on the term loan re-pricing; and SunTrust acted as the agent on the revolving credit facility.
The $1.6 billion term loan facility was increased by $150 million to $1.75 billion and will bear interest at LIBOR plus 3.00% (versus the previous 3.5%), with a minimum LIBOR rate of 1.00 percent, and was priced at par. Its revolving credit facility will bear interest at LIBOR plus 2.75% (versus the previous 3.00%) based on the current leverage level. As a result of the re-pricing and incremental $150 million, Zayo expects to save approximately $2 million of annual cash interest payments. The incremental $150 million will be for general corporate purposes.
Boulder, CO-based Zayo Group is a global provider of fiber-based Bandwidth Infrastructure services and carrier-neutral colocation and interconnection services.