(Bloomberg) -- Zayo Group Holdings Inc. is nearing a tentative agreement with creditors that would extend maturities on some of the fiber-network operator's multibillion-dollar debt pile, according to people familiar with the situation.
The framework would entail lenders of a nearly $5 billion secured loan due 2027 being partially paid and unsecured creditors receiving a coupon bump in return for agreeing to extend due dates, said the people, who asked not to be identified discussing a private matter.
Some added that the tentative deal would also address how Zayo plans to finance its pending acquisition of Crown Castle Inc. fiber assets.
The plan would be the culmination of negotiations between debt-laden Zayo and an ad-hoc group of creditors advised by Houlihan Lokey Inc. and Gibson Dunn & Crutcher. Talks restarted in April, a month after the Crown Castle deal was announced and following prior stalled talks, Bloomberg News previously reported.
Representatives with Zayo and Houlihan declined to comment, while a spokesperson for Gibson didn't immediately respond to requests for comment.
Zayo has around $10 billion of debt, according to data compiled by Bloomberg. The 2027 term loan is quoted at around 96 cents on the dollar.
Bloomberg, citing people familiar with the situation, reported last year that Zayo put its non-North American operations into separate entities, receiving just over $1 billion in return through an intercompany loan and cash. The firm in May completed a $1.58 billion asset-securitization deal after having sold $1.4 billion of bonds backed by network infrastructure and customer contracts.
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