Zayo Group, which continues to build up its stature through various acquisitions, has just raised $315 million in new funding via a five-year term loan.
RBC Capital Markets, Barclays Capital and SunTrust marketed the loan and allocated to 25 institutional investors.
The service provider will use these new funds for last week's $345 million acquisition of 360networks, with the remainder of the purchase price and transaction expenses will be funded with cash on hand.
With the acquisition of 360networks complete, Zayo's pro-forma indebtedness as of the end of September 2011 is about $710.5 million.
Zayo's 360networks deal is likely not going be the last. Since Zayo was formed in 2007, the service provider has made 17 acquisitions, a number of which have been targeted at extending the footprint of its fiber network to serve service providers with wholesale dark fiber and traditional TDM and IP/Ethernet-based services.
- see the release
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