Bulletin: Zayo Group LLC's Agreement To Buy Allstream Assets From MTS Inc. Has No Immediate Ratings Impact

NEW YORK (Standard&Poor's) Nov. 23, 2015--Standard&Poor's Ratings Services today said that Boulder, Colo.-based fiber infrastructure and colocation provider Zayo Group LLC's (B/Stable/--) definitive agreement to acquire MTS's Allstream assets has no immediate impact on ratings. Zayo will acquire Allstream Inc. for C$465 million, representing a pre-synergy purchase multiple of about 4.65x (excluding restructuring charges at Allstream). The acquisition will contribute approximately C$600 million to Zayo's top line, increasing revenues and EBITDA by about 30% and 9%, respectively. In our view, the acquisition complements Zayo's existing infrastructure business by adding over 5,000 metro fiber route miles in Canada's top five metro markets. The transaction follows the announcement that Zayo had agreed to acquire infrastructure and non-Irish enterprise

...NEW YORK (Standard & Poor's) Nov. 23, 2015--Standard & Poor's Ratings Services today said that Boulder, Colo.-based fiber infrastructure and colocation provider Zayo Group LLC's (B/Stable/--) definitive agreement to acquire MTS's Allstream assets has no immediate impact on ratings. Zayo will acquire Allstream Inc. for C$465 million, representing a pre-synergy purchase multiple of about 4.65x (excluding restructuring charges at Allstream). The acquisition will contribute approximately C$600 million to Zayo's top line, increasing revenues and EBITDA by about 30% and 9%, respectively. In our view, the acquisition complements Zayo's existing infrastructure business by adding over 5,000 metro fiber route miles in Canada's top five metro markets. The transaction follows the announcement that Zayo had agreed to acquire infrastructure and non-Irish enterprise businesses from Viatel Holding (Bermuda) Ltd. for 95 million earlier this month. Adjusted leverage for Zayo was approximately 6.4x as of...

Bulletin