UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2011
ZAYO GROUP, LLC
(Exact name of registrant as specified in its charter)
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Delaware |
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333-169979 |
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26-201259 |
(State or other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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400 Centennial Parkway, Suite 200, Louisville, CO
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80027 |
(Address of Principal Executive Offices) |
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(Zip Code) |
Registrants telephone number, including area code: (303) 381-4683
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(Former name or former address if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Section 7 Regulation FD
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Item 7.01 |
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Regulation FD Disclosure |
On October 7, 2011, Zayo Group, LLC (Zayo, the Company or we) issued a filing on Form 8-K
announcing its entrance into a Stock Purchase Agreement (the Agreement) to acquire 100 percent of
the outstanding capital stock of 360networks Holdings (USA) Inc. (360networks). In conjunction
with the Agreement, the Company has obtained a commitment from lenders to fund a $295.0 million
senior secured credit facility (the Facility) to partially fund the $345.0 million acquisition.
RBC Capital Markets, Barclays Capital, Inc. and SunTrust Bank, Inc. (collectively the Lead
Arrangers), in their capacity as Lead Arrangers of the
Facility, anticipate distributing marketing materials to potentials investors in the Facility. The Lead Arrangers intend to
communicate to potential investors certain financial data of 360networks which has not been made
publically available. The Company is issuing this filing on Form 8-K in order to make publically
available the financial information of 360networks which may be used
by the Lead Arrangers in their marketing material for purposes of soliciting potential investors in the Facility.
The consolidated financial statements of 360networks Corporation are attached to this filing as
exhibit 99.1. The Agreement is to acquire 100 percent of the outstanding capital stock of
360networks which is a subsidiary of 360networks Corporation. Upon the closing of the acquisition,
the Company would acquire substantially all of the operating assets of 360networks Corporation,
however, there are certain non-operating assets which are included in the attached consolidated
financial statements of 360networks Corporation which will not be acquired by the Company. These
non-operating assets include, but are not limited, to the $58.4 million restricted and
non-restricted investment balance held by 360networks Corporation as of December 31, 2010.
Additionally, 360networks Corporations historical results include the operating results generated
by its Voice over Internet Protocol (VoIP) product offerings. Upon the closing of the
acquisition, Zayo intends to spin-off the components of 360networks which support the VoIP business
to the Companys parent Zayo Group Holdings, Inc. For these and other reasons, the historical
operating results of 360networks Corporation are not indicative of expected future results of
operations which the Company would realize subsequent to closing the acquisition.
The consolidated financial statements of 360networks Corporation as of and for the years ended
December 31, 2011 and 2010, attached as exhibit 99.1, were prepared by management of 360networks as
of July 13, 2011 and the litigation and subsequent event disclosures as addressed in footnote 15
Commitments and Contingencies and footnote 16 Subsequent Events, have not been updated for
events that has occurred from that date to the date of this filing on Form 8-K. The following
discussion acts as an update to these footnote disclosures.
As further discussed in exhibit 99.1 under footnote 15 Commitments and Contingencies
Contingent Liability Preference Recoveries, as of December 31, 2010, 360networks Corporation had
a contingent liability related to two adversary proceedings filed against 360networks (USA) inc.
(360USA). The first adversary proceeding captioned Steven J. Reisman, As Post Confirmation
Representative of the Chapter 11 Estates of 360networks (USA) inc. vs. 360networks (USA) inc.,
Bankr. S.D.N.Y Adv. Pro. No. 10-02792 (ALG) (the Reisman Action) was filed on February 1, 2010,
seeking restitution to recover $16.1 million in payments made to 360USA. A second adversary
proceeding captioned Gowan v. 360networks (USA) inc., Bankr. S.D.N.Y. Adv. Pro. No. 10-03904 (SMB)
(the DLLP Action) was filed October 18, 2010, and sought to recover $11.9 million in alleged
preference payments from 360USA. Both the Reisman Action and DLLP Action were settled pursuant to
a tripartite settlement agreement (the Settlement) dated August 4, 2011, that was subsequently
approved by the courts in both the Reisman Action and the DLLP Preference Action. Pursuant to the
Settlement, on October 25, 2011, 360USA paid $5,325,000 to the representative in the Reisman Action
and $2,875,000 to the trustee in the DLLP Action. The Reisman Action was then dismissed with
prejudice on October 31, 2011 and dismissal with prejudice of the DLLP Action is expected within
the next 10 days of the date of this filing on Form 8-k. 360networks recognized other income of
$3.02M in October as a result of these settlements.
This filing is not intended to fulfill the Companys requirements to file with the SEC the
financial statements of businesses acquired or to be acquired under Article 3-05 of Regulation S-X.
The Company intends to file the pre-acquisition audited financial statements required by Article
3-05 of Regulation S-X and any required pro-forma financial information required by Article 11 of
Regulation S-X at a later date.
Select financial information of 360networks Corporation covering the six months ended June 30, 2011
has been attached to this filing as exhibit 99.2. The information in exhibit 99.2 is unaudited and
un-reviewed and as such is subject to change and is not indicative of expected future results of
operations of the Company subsequent to the closing of the acquisition for the reasons described
above.
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Item 9.01. |
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Financial Statements and Exhibits. |
(d) Exhibits. The following exhibit is furnished with this Form 8-K:
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Exhibit No. |
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Description |
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99.1 |
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Consolidated Financial Statements of 360networks Corporation as of and for the years ended December 31, 2010 and 2009. |
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99.2 |
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Select financial information of 360networks Corporation as of and for the six months ended June 30, 2011. |
The information contained under Item 7.01 and 9.01 of this filing on Form 8-K shall not be deemed
filed for purposes of Section 18 of the Securities Exchange Act of 1934, and shall not be deemed
incorporated by reference in any filing with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 or the Securities Act of 1933, whether made before or after the
date hereof and irrespective of any general incorporation language in any filings.
Portions of this report may constitute forward-looking statements as defined by federal law.
Although the Company believes any such statements are based on reasonable assumptions, there is no
assurance that actual outcomes will not be materially different. Additional information about
issues that could lead to material changes in the Companys performance is contained in the
Companys filings with the Securities and Exchange Commission. The Company undertakes no
obligation to publicly update or revise any forward-looking statements to reflect events or
circumstances after the date hereof.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ZAYO GROUP, LLC
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By: |
/s/ Ken desGarennes
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Ken desGarennes |
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Chief Financial Officer |
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DATED: November 3, 2011