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News Jan 27, 2017

Shearman & Sterling Advises on Bank/Bond Financing for Zayo's Acquisition of Electric Lightwave and on Refinancing of Zayo’s Existing Term Loan

Shearman & Sterling represented Morgan Stanley Senior Funding, Inc., Barclays Bank PLC, SunTrust Robinson Humphrey, Inc., Sun Trust Bank, Royal Bank of Canada, RBC Capital Markets LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank, N.A. as arrangers in connection with commitments for a $650 million term loan facility, and Morgan Stanley Senior Funding, Inc. as term facility administrative agent on a $1.85 billion term loan facility for Zayo Group, LLC and Zayo Capital, Inc.

Concurrently with this transaction, a Shearman & Sterling team also represented Morgan Stanley & Co. LLC, Barclays Capital Inc., SunTrust Robinson Humphrey, Inc., RBC Capital Markets, LLC, Citigroup Global Markets Inc., Goldman, Sachs & Co. and J.P. Morgan Securities LLC as joint lead and joint bookrunning managers in connection with the offering of $800 million 5.750% senior notes due 2027 by Zayo Group, LLC and Zayo Capital, Inc. 

Zayo Group will use the net proceeds from the offering of the notes, together with the $650 million term loan facility, to finance its pending acquisition of Electric Lightwave and to pay related transactions fees and expenses. Proceeds from the $1.85 billion term loan facility will be used to refinance Zayo Group’s existing term loan facility. 

Zayo Group provides comprehensive bandwidth infrastructure services in over 300 markets throughout the United States, Canada and Europe. Electric Lightwave is the largest regional fiber-based provider in the Western United States providing a host of infrastructure and telecom services and solutions.

The Shearman & Sterling capital markets team was led by partners Ilir Mujalovic (New York-Capital Markets) and Harald Halbhuber (New York-Capital Markets); and associates Nathan Mee (San Francisco-Capital Markets), Daniel Yao (New York-Capital Markets) and Frank Oliver (New York-Corporate). 

The Shearman & Sterling finance team was led by partner Maura O’Sullivan (New York-Finance) and associate Andrea Steeves (New York-Finance).

Other key members of the team included partner Michael Shulman (Washington, DC-Tax) and associate Jeffrey Tate (Washington, DC-Tax).