Zayo Group Holdings, Inc. (NYSE: ZAYO) subsidiary Zayo Group, LLC intends to offer USD 800m of senior notes, the company said.
Zayo expects to enter into an amendment to its credit agreement governing its senior secured term loan facility, under which Zayo intends to enter into a new seven-year USD 2.5bn incremental term loan facility, of which USD 1.85bn will be used to repay all outstanding indebtedness under the term loan facility.
However, the terms of the term loan amendment are not yet final and are subject to change.
Zayo intends to use the net proceeds from the senior notes offering, together with the net proceeds from the remaining USD 650m of the Incremental term loan, to fund the consideration to be paid in connection with Zayo´s acquisition of Electric Lightwave Parent, Inc. Any excess net proceeds will be used for general corporate purposes, which may include repayment of other indebtedness, acquisitions, working capital and capital expenditures.
Zayo Group Holdings provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud services to the world´s leading businesses.