Front Range BidCo, the vehicle set up by Digital Colony Partners of the US and EQT Infrastructure of Sweden for $14 billion, announced the prices of the bonds only yesterday evening.
Yet financial news sources said the joint venture had already drawn over $10 billion worth of orders. “Investors piled into new paper from a well-known name despite tight pricing,” said Reuters.
The agency quoted an unnamed person “close to the deal” as saying of Zayo: “It’s a name that has been in the market for a long time, is viewed as pretty defensive and stable. It came in tight for the market, but not crazy.”
According to the reports, Front Range BidCo is due to borrow $5.56 billion to help fund the acquisition, which is expected to be completed by mid-April.
Digital Colony, led by Marc Ganzi (pictured), and EQT, the joint owners of Front Range BidCo, will also contribute $6.388 billion worth of equity to fund the purchase. Both investment groups have been raising money in new funds and by selling off non-core assets in recent months.
Zayo said yesterday’s offer of $2.58 billion worth of bonds will close on or about 9 March. The proceeds will be placed into escrow to be used to finance a merger of Front Range BidCo with and into Zayo, and Zayo will continue as the surviving corporation.
