Zayo Announces Pricing of Inaugural $1.42 Billion of Asset-Backed Term Notes

DENVER--(BUSINESS WIRE)--Zayo, a leading communications infrastructure provider, today announced its debut asset-backed securitization financing. On January 31, 2025, Zayo priced $1.42 billion of asset-backed term notes (the “Notes”), to be originated by subsidiary Zayo Issuer, LLC, and secured by fiber network assets and associated contracts in the Northeast region of Zayo’s U.S. footprint. The company’s mission-critical fiber infrastructure and long-term customer contracts are well-suited for the business’s debut securitization financing. The transaction is expected to close on February 14, 2025, subject to the satisfaction of customary closing conditions.

The Notes will be issued in three classes, consisting of $1,022,500,000 5.6% Series 2025-1, Class A-2 term notes, $164,900,000 6.1% Series 2025-1, Class B term notes and $230,900,000 8.7% Series 2025-1, Class C term notes, each with an anticipated repayment date in March 2030. Collectively, the Notes have a weighted average coupon of approximately 6.2%.

“This inaugural securitization transaction represents a significant milestone for Zayo. It underscores the strength of our business and continued investor demand for exposure to Zayo’s highly attractive fiber infrastructure,” said Jeff Noto, Chief Financial Officer of Zayo. “Upon the completion of the transaction, Zayo intends to leverage this added financial flexibility to enhance our balance sheet, further invest in our business and network and focus on delivering fiber infrastructure products and fiber-enabled solutions to an increasingly diverse, blue-chip customer base across North America.”

About Zayo

For more than 17 years, Zayo has empowered some of the world’s largest and most innovative companies to connect what’s next for their business. The Zayo group of companies connects 400 global markets with future-ready networks that span over 18.7 million fiber miles and 146,000 route miles. Zayo’s tailored connectivity solutions and managed services enable carriers, cloud providers, data centers, schools, and enterprises to deliver exceptional experiences, from core to cloud to edge. Discover how Zayo connects what’s next at www.zayo.com and follow us on LinkedIn.