Another week, another dark fiber buildout project for Zayo. Today they announced plans to construct a new route between the NYSE facility in Mahwah and Equinix's NY5 data center in Secaucus.
The new route will be 37.7km, which shaves off 0.6km off of Zayo's other route to Equinix's NY4 data center the next block over. That other route just came online five weeks ago, so it isn't exactly old news. The new route will be ready in Q2 of this year, and will offer diversity as well as speed. The urgency of low latency in the financial vertical has ebbed from the mania of a few years back, but it's still a key piece of the puzzle -- especially on this route.
And along with a recently announced proposal to sell additional stock after its successful IPO in October, Zayo is looking to do a little refinancing work. They plan to sell another $730M of the 6% notes due 2023 that they sold $700M of to buy Latisys earlier this quarter. The proceeds will go toward refinancing the $675M in 8.125% notes due 2020 they have outstanding.