Zayo Secures $2.3B in Asset-Backed Securities

Zayo Group is preparing to issue $2.3 billion in asset-backed securities (ABS) secured against its enterprise dark and lit fiber infrastructure. This will be Zayo's fourth and fifth securitization offerings, following multiple similar transactions completed the prior year. Moody's has assessed the securitized assets as comprising around 65% of Zayo's extensive fiber network, which operates across approximately 250 North American markets with about 138,000 fiber route miles.

This significant capital investment through asset-backed securities enhances Zayo's financial stability and operational flexibility. The move indicates a strategic push to bolster the national fiber network infrastructure, potentially improving the resilience and robustness of telecommunications in North America. It reflects a growing trend of leveraging fiber assets to secure funding, thus reinforcing Zayo’s position in the competitive telecom landscape and possibly reducing dependency on outside financial sources.