Moody’s rates Zayo loan Ba2

Moody's Investors Service said it assigned a Ba2 rating to Zayo Group, LLC's new $400 million incremental term loan offering.

The outlook is stable.

The new loan is expected to be pari passu with the company's existing senior secured debt.

Proceeds from the issuance will be used for the previously announced Allstream Inc. acquisition.

Over the next 12 to 18 months, the agency expects Zayo's leverage to remain in the 4.5 times to 5 times range (Moody's adjusted, pro forma for recent M&A) as recent increases in debt should be offset by higher EBITDA from acquisitions and organic growth.

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