Zayo has completed its follow-on public offering of 21.85 million shares of its common stock, including 4 million shares sold by the company and 17.85 million sold by shareholders, at $27.35 a share.
The service provider said that it plans to use the net proceeds of the sale to fulfill general corporate purposes that could include possible new acquisitions, working capital, capital expenditures and paying down debt.
Goldman, Sachs & Co., Barclays and Morgan Stanley acted as lead joint book-running managers and representatives of the underwriters for the offering. RBC Capital Markets, J.P. Morgan, Citigroup and SunTrust Robinson Humphrey acted as joint book-running managers.
This latest offering follows the IPO it launched last October. At that time, Zayo's stock jumped 20 percent as investors bet on the growing demand from businesses and carriers for fiber-based services.
Besides making various acquisitions to enhance its fiber reach, the service provider continues to pursue key partnerships with cloud players like Amazon Web Services (AWS) to help business customers gain more options to connect to the cloud.
Growing the company's fortunes through a mix of organic activities and targeted acquisitions continues to be a priority for Zayo.
Having recently completed its acquisitions of regional providers IdeaTek and Latisys, Zayo reported that its revenue rose 4 percent sequentially to $323.9 million in its second fiscal quarter.
Today, Zayo's network reaches 16,700 buildings, including 827 data centers, 495 carrier POPs and 10,151 enterprise buildings.
- see the release
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