Zayo has announced its debut asset-backed securitization financing, pricing $1.42 billion of asset-backed term notes on January 31, 2025. The notes, secured by fiber network assets in the Northeast, highlight the strength of Zayo's infrastructure and long-term customer contracts. Closing is expected on February 14, 2025, pending customary conditions.

The notes will be categorized into three classes: Class A-2 term notes at $1,022,500,000 with a 5.6% interest rate, Class B term notes at $164,900,000 with a 6.1% interest rate, and Class C term notes at $230,900,000 with an 8.7% interest rate. The anticipated repayment for all classes is set for March 2030.

Jeff Noto, Chief Financial Officer of Zayo, noted, “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.” He added that the transaction will enable Zayo to enhance its balance sheet and invest in further network developments.