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.”
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