Zayo is working with banks to help gauge investor interest in raising new debt at its Zayo Europe subsidiary, which was proposed to be carved out from the company in May, according to 9fin sources.

The fiber network company is considering raising $750m to $900m of new bonds and loans, sources said. It is then looking to retain $100m-$200m of the potential proceeds at the European entity and send the rest to the US subsidiary to repay the revolver due March 2025, sources said.