Friday morning seems to be Zayo's preferred timeframe to announce its significant contract wins. This morning the network operator revealed a deal with an unnamed 'leading colocation provider.
The colo provider is consolidating its network infrastructure, leveraging 100G wavelengths. The solution includes more than 20 diverse routes on Zayo's existing fiber backbone, including the parts recently acquired from Electric Lightwave.
Zayo also did a bit of balance sheet work. They are issuing $550M in 5.75% senior notes due 2027, which they will use to partially repay two term loans due 2024 with $2B outstanding. Money is pretty cheap right now, and they can lock in some of it at a nice, low fixed rate.
Along with the somewhat unexpected management shakeup that will see Andrew Crouch come in as President and COO taking over from Chris Morley, Zayo has had a pretty eventful week.Financials · Internet Backbones · Metro fiber