Zayo Group has successfully completed the amendment of its credit agreement, including the re-pricing of both its term loan and revolving credit facility.
The $1.6 billion Term Loan Facility will bear interest at LIBOR plus 4.00 percent, with a minimum LIBOR rate of 1.25 percent, and was priced at par. Its revolving credit facility remains undrawn and will bear interest at LIBOR plus 3.50 percent based on the current leverage level. As a result of the re-pricing, Zayo expects to save approximately $30 million of annual cash interest payments.
In addition, the company amended certain terms and provisions of its credit agreement, including increasing its incremental capacity, removing any leverage limitations on future acquisitions and reducing the revolving credit facility by $25 million to $225 million. The closing of the transaction is scheduled to be completed on October 5, 2012.
For more information on Zayo, visit www.zayo.com.
