They refinanced their $1.6B term loan facility to cut another $12M in annual interest expenses, while also expanded the size of their undrawn revolver back up to $250M and lowering its interest rate as well. They also managed to increase the total leverage incurrence test from 5x to 5.25xEBITDA and removed the senior secured and total leverage maintenance covenants entirely.
Interestingly, it has only been a few months since the last time Zayo refinanced its balance sheet. In October they cut the rate on their term loan facility to LIBOR+4% with a minimum of 1.25%, and after today's move it is LIBOR+3.5% with a minimum of 1.0%.
All of which is just Zayo putting its house further in order in the wake of last year's huge M&A moves, the biggest of which was AboveNet. And of course they're always getting the balance sheet ready for the next deal. You know one will happen sooner or later -- though I don't think anything is particularly imminent.
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