Fiber network owner Zayo files for IPO

|By:, SA News Editor

Zayo, a major owner of long-haul, regional, and metro fiber networks in the U.S. and Europe, has filed for a $100M IPO. No symbol has been given yet. Underwriters include Morgan Stanley, Barclays, Goldman, RBC, Citi, and SunTrust. (prospectus)

Zayo's network covers 77K+ route miles and 5.7M+ fiber miles, reaches 297 geographics markets, and connects to 14.5K buildings, 3.8K cellular towers, and 527 data centers. The company sells bandwidth to major carriers, enterprises, and Internet companies, and government agencies.

Revenue totaled $826.5M (+11% Y/Y) over the 9 months ending March 31, and net loss $105.6M. Adjusted EBITDA was $482.6M, and levered free cash flow $135.4M.

Zayo had $254.6M in cash at the end of March, and $2.99B in long-term debt and capital lease obligations.

The offering comes as two rivals - Level 3 and TW Telecom - get set to merge. Zayo spent $2.2B in 2012 to buy fellow bandwidth provider AboveNet.