Zayo Announces Pricing of $1.53 Billion of Asset-Backed Term Notes

May 01, 2025 at 13:04 PM EDT

Builds on Success of Company’s Inaugural Securitization, Completed in Q1 2025

Zayo, a leading communications infrastructure provider, today announced it has priced $1.53 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 Midwest and Northeast regions of Zayo’s U.S. footprint. The transaction is expected to close on May 15, 2025, subject to the satisfaction of customary closing conditions.

Zayo’s mission-critical fiber infrastructure and long-term customer contracts are well-suited for asset-backed securitization financing. This transaction is the company’s second asset-backed securitization financing, following its inaugural $1.42 billion asset-backed securitization, completed in the first quarter of 2025.

The Notes will be issued in three classes, consisting of $1,101,900,000 6.0% Series 2025-2, Class A-2 term notes, $177,700,000 6.6% Series 2025-2, Class B term notes and $248,800,000 9.5% Series 2025-2, Class C term notes, each with an anticipated repayment date in June 2030. Collectively, the Notes have a weighted average coupon of approximately 6.6%.

“This transaction demonstrates Zayo’s continued momentum in the capital markets, building on the success of our inaugural asset-backed securitization completed earlier this year,” said Jeff Noto, Chief Financial Officer of Zayo. “We are pleased to see continued strong demand from investors who share our conviction in critical fiber infrastructure as the proliferation of AI increases demand for high bandwidth connectivity. We look forward to the completion of this transaction, which will enhance our balance sheet and support additional investment in our network to enable economic growth and innovation across the United States.”

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 19 million fiber miles and 147,000 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.