On October 17, 2014, Zayo successfully completed its initial public offering (IPO) of 24,079,002 shares of common stock, which consisted of 16,008,679 shares sold by the Company (Zayo) and 8,070,323 shares sold by the selling stockholders at a price to the public of $19.00 per share. Morgan Stanley, Barclays, and Goldman, Sachs & Co. acted as lead book-running managers and representatives of the underwriters for the offering. RBC Capital Markets, Citigroup and SunTrust Robinson Humphrey acted as joint book-running managers for the offering. Zayo will use the net proceeds of the IPO for general corporate purposes, which may include the redemption of certain outstanding indebtedness, acquisitions, working capital and capital expenditures.
On July 2, 2014, Zayo acquired Colo Facilities Atlanta (“AtlantaNAP”), an Atlanta data center and managed services provider. The acquisition of AtlantaNAP yields over 72,000 square feet of total data center space, including 42,000 square feet of conditioned colocation space, bringing Zayo’s data center count to 28 locations. Funded with cash on hand, the purchase opens a new market for Zayo’s colocation division, zColo, and complements Zayo’s Atlanta fiber network, which spans more than 600 route miles.
On July 1, 2014 Zayo acquired Neo Telecoms (“Neo”), a Paris-based Bandwidth Infrastructure company. The acquisition adds many route miles of Dark Fiber and more than 500 on-net buildings to Zayo’s network. Neo also operates 9 colocation centers across France, offering more than 36,000 square feet of data center space. The Paris and regional network throughout France will be integrated into Zayo’s existing European network connecting London, Frankfurt and Amsterdam and the U.S.
On May 16, 2014, Zayo acquired Geo Networks Ltd (“Geo”)", a London-based dark fiber provider. Geo owns and operates a high-capacity fiber network in the UK, providing managed networks, dark fiber and co-location services. The Geo acquisition will significantly increase Zayo’s fiber footprint in the UK, adding over 1,800 miles of national fiber connecting 130 data centers, telehouses and key internet exchanges. It also will provide direct access to major cities including Manchester, Birmingham and other significant commercial regions. In addition to enhancing Zayo’s UK network, Geo’s fiber enables Zayo to establish a presence in Ireland through the diverse optical fiber subsea system, East-West Ring, providing diverse connectivity to Dublin, a strategic hub for data centers and cloud service providers.
In May, Zayo successfully completed the amendment of its credit agreement, including a $275 million add-on to its term loan facility. The $1.74 billion term loan facility was increased by the $275 million to $2.015 billion. A portion of the offering proceeds were used to repay Zayo’s $150 million of borrowings on its revolving credit facility, which was drawn to help fund its previously announced acquisition of Geo Networks Ltd. The remaining proceeds will be used to fund the acquisition of Neo Telecoms Group, which is expected to close on July 1, 2014.
In March, zColo, the colocation division of international Bandwidth Infrastructure provider Zayo Group, LLC (“Zayo”), acquired CoreXchange, Inc., a data center, bandwidth and managed services provider in Dallas, Texas. The purchase adds one new data center, located at 8600 Harry Hines Blvd, to the zColo portfolio. In addition, zColo will secure an additional 12,000 square feet in CoreXchange’s suite at its existing data center in the Dallas Infomart at 1950 N. Stemmons Freeway.The acquisition yields over 18,000 square feet of total data center space and brings zColo’s national data center count to 27 locations. As a part of the acquisition, Zayo will also assume ownership of ColoUnlimited, CoreXchange’s online presence that facilitates simple, real-time online sales and ordering of colocation services.