Monday Bytes: Zayo, CS&L, Hibernia

June 6th, 2016 by · Leave a Comment

Back in the saddle again this week, and here's a few things I'm catching up on:

One network deal from last week I missed at the time was an international Ethernet deal for Zayo.  Link11 has picked Zayo's E-LAN solution to power its global connectivity, with nodes in London, Frankfurt, Miami, New York, and Los Angeles.  Germany-based Link11 hosts servers and specializes in the CDN and DDoS protection its customers need to go with them.  Zayo's Viatel assets in particular were mentioned specifically as being leveraged, which is interesting since of the locations mentioned Viatel was mostly just in Frankfurt and in London where Zayo already had a big presence.  Viatel's assets, however, fill in a lot of blanks for Zayo in Europe, putting them in a much better position to win global Ethernet network deals in general.

CS&L has updated its filings with the SEC to include pro forma financial data from PEG Bandwidth, giving us a a few details on the formerly privately held operator.  In Q1, PEG Bandwidth did some $20.26M in revenue, a figure that was up 15% over the first quarter of 2015.  They didn't calculate adjusted EBITDA, but eyeballing the expenses puts it at about $9M for the quarter based on operating expenses of $11.2M.  The purchase price of $409M therefore comes into better focus, with an EBITDA multiple of somewhere in the 11x range, though I'm sure the financial guys have it calculated to a lot more decimal places.

And last week, Hibernia Networks completed a significant refinancing.  They raised a $165M senior secured credit facility with a new lender group led by MUFG and including ING Capital, Citizens Bank, HSBC, and CIT.  The funds will be put toward paying down $97M of debt as well as fund growth projects, both organic and inorganic.  Just what Hibernia has next on the table after completing its new transatlantic system in 2015 is an interesting question.  But the primary driver here is probably the lower interest rate, which suggests that the bankers feel that sales on Hibernia Express are justifying the build.

 

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Categories: Ethernet · Financials · Metro fiber · Undersea cables

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