Bulletin: Zayo Group LLC Ratings Are Unaffected By $150 Million Add-On To Its Term Loan B-2

NEW YORK (S&P Global Ratings) Feb. 15, 2018--S&P Global Ratings today said that its corporate credit rating and outlook on Boulder, Colo.-based fiber infrastructure and colocation provider Zayo Group LLC (B+/Stable/--) are unaffected by the company's proposed $150 million add-on to its term loan B-2 due 2024 (resulting in $1.28 billion outstanding in total). The issue-level rating on the company's senior secured debt is unchanged at 'BB' and the recovery rating on this debt is '1', which indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery of principal and interest for secured lenders in the event of a payment default. The company will use net proceeds of the add-on to fund the recent acquisitions of fiber infrastructure providers

...NEW YORK (S&P Global Ratings) Feb. 15, 2018--S&P Global Ratings today said that its corporate credit rating and outlook on Boulder, Colo.-based fiber infrastructure and colocation provider Zayo Group LLC (B+/Stable/--) are unaffected by the company's proposed $150 million add-on to its term loan B-2 due 2024 (resulting in $1.28 billion outstanding in total). The issue-level rating on the company's senior secured debt is unchanged at '##' and the recovery rating on this debt is '1', which indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery of principal and interest for secured lenders in the event of a payment default. The company will use net proceeds of the add-on to fund the recent acquisitions of fiber infrastructure providers Spread Networks and Neutral Path Communications. The increase in secured debt is partially offset by increased value that we attribute to the acquisitions in our hypothetical default scenario. As a result, the '##' issue-level rating...

Bulletin