Front Range BidCo, Inc. (“Merger Sub”) has announced the pricing of its private offering of USD 1.50 billion aggregate principal amount of 4.000% senior secured notes due 2027 (the “Secured Notes”) and USD 1.08 billion aggregate principal amount of 6.125% senior unsecured notes due 2028 (the “Unsecured Notes” and, together with the Secured Notes, the “Notes”), the company said.
This represents an increase of USD 500.0 million in the aggregate principal amount of the Secured Notes, a USD 500.0 million increase in the aggregate principal amount of the new senior secured credit facilities, and a USD 1.00 billion decrease in the aggregate principal amount of the Unsecured Notes from previously announced amounts.
The Secured Notes will bear interest at 4.000% per annum and will mature on March 1, 2027. The Unsecured Notes will bear interest at 6.125% per annum and will mature on March 1, 2028. Interest on the Notes will be payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2020.
Merger Sub intends to use the net proceeds from the offering of the Notes as part of the financing for the previously announced acquisition of Zayo Group Holdings, Inc. (“Zayo”) by a consortium led by Digital Colony Partners and EQT Infrastructure (the “Merger”).
The offering of the Notes is expected to close on or about March 9, 2020.