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Boulder-based Zayo prices IPO at $19 per share, sees shares climb in NYSE debut [Daily Camera, Boulder, Colo.](Daily Camera (Boulder, CO) Via Acquire Media NewsEdge) Oct. 17--After pricing its initial public offering below expectations, Zayo Group Holdings Inc. still received a welcome reception from Wall Street on Friday during the Boulder telecom's public market debut. Shares of Zayo, a provider of broadband infrastructure services, rose $3, or 15.8 percent, to close at $22 on Friday. Shares traded as high as $22.85. Zayo's $19 per share pricing and 21.05 million shares offered -- resulting in a nearly $400 million initial public offering -- were below projections of $21 to $24 per share and 28.9 million, respectively. Underwriters have a 30-day option to purchase an additional 3.03 million shares. At 16 million shares, Zayo's portion of the shares offered, however, was above last week's expectations that the company would offer 11.1 million shares and shareholders would sell 17.7 million shares. Officials for Zayo (NYSE: ZAYO) expect the company's net proceeds from the offering to be $281.8 million. Zayo officials plan to use the proceeds from the IPO for general corporate purposes including paying down debt, working capital and capital expenditures, officials said in the registration statement. The company had about $3.24 billion in debt as of June 30. Zayo, which was formed in 2006 by local telecom veterans and launched the next year, has grown via acquisition. The company has spent nearly $4 billion to acquire 32 firms -- the largest transaction being that of New York-based AboveNet for $2.2 billion. In Zayo's most recent fiscal year, which ended on June 30, the company lost $179.3 million, or 80 cents per share, on revenue of $1.1 billion. The year before, Zayo lost $137.2 million, or 61 cents per share, on $1 billion, according to financial statements filed with the SEC. Zayo's largest shareholders include firms such as Battery Ventures, Charlesbank Capital Partners, Columbia Capital, GTCR, M/C Partners, Oak Investment Partners and parent company Communications Infrastructure Investments LLC. Morgan Stanley, Barclays, and Goldman, Sachs & Co. served as lead book-running managers as well as representatives of the underwriters for the offering. RBC Capital Markets, Citigroup and SunTrust Robinson Humphrey were joint book-running managers. ___ (c)2014 the Daily Camera (Boulder, Colo.) Visit the Daily Camera (Boulder, Colo.) at www.dailycamera.com Distributed by MCT Information Services |