Zayo increases term loan facility to $1.75B
Zayo has completed an amendment of its credit limit, increasing its $1.6 billion term loan facility by $150 million to $1.75 billion.
The service provider said that with the repricing and the incremental $150 million increase it expects to have about $2 million in annual cash interest payments. It plans to use the additional funds for general corporate purposes.
Morgan Stanley, Barclays Capital and RBC Capital Markets served as joint bookrunners and Citigroup, Goldman Sachs, SunTrust and UBS served as co-managers on the term loan repricing. SunTrust also acted as the agent on the revolving credit facility.
This credit facility increase comes as Zayo continues to build out its network both organically and through acquisitions. Since the company was founded in 2007, it has made 25 acquisitions of service providers and network assets.
Acquisitions have had a positive effect on the company. In fiscal Q1 2013, Zayo reported that the addition of new customers and network facilities from its purchases drove up revenue 10 percent to $264.3 million.
Zayo has been complementing its inorganic growth activities by expanding its route miles and adding more buildings to its fiber network. One example of this was seen last month in Miami where it announced plans to build a high-count fiber ring connecting Digital Realty Trust's (DRT) data center to the NAP of the Americas at 50 NE 9th Street.
- see the release
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