Zayo Announces Successful Issuance of Sustainability-Linked Debt Funding, Enhanc… – Press Release


$750 million sustainability-linked term loan links Zayo’s cost of capital to achieving its greenhouse gas reduction targets and diversity initiatives

Zayo Group Holdings, Inc., a global leader in communications infrastructure, announced that it has successfully completed the marketing of a $750 million sustainability-linked first lien term loan (“ESG Term Loan”), the first ESG-linked term loan raised by a U.S. bandwidth infrastructure company. The transaction highlights Zayo’s market leadership and continued commitment to ESG, and properly aligns investors with the company’s ESG ambitions.

As part of its broader ESG strategy, Zayo will establish science-based targets that aim to reduce its annualized Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions to achieve the long-term goal of Net Zero by 2030. Zayo has also already established long-term goals for diversity initiatives. The interest rate on the ESG Term Loan is linked to both the attainment of the science-based emission reduction targets and Zayo’s continued advancement in the areas of diversity, equity and inclusion.

Proceeds from the ESG Term Loan transaction will be used to drive continued organic growth, fund the recently announced acquisition of Education Networks of America (“ENA”), a leader in providing managed network connectivity and security services to E-Rate funded schools and other public sector customers, and other general corporate purposes.

“We are committed to long-term environmental sustainability, diversity, equity and inclusion. The ESG Term Loan aligns Zayo and its investors towards common goals that broadly benefit the environment and society. Funds from the loan will, in part, provide financing for Zayo’s transformational ESG efforts, including providing connectivity to more schools – which is ENA’s core business offering – and Zayo’s strategic efforts to reduce carbon emissions and improve diversity,” said Matt Steinfort, Chief Financial Officer, Zayo.

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