Zayo secures debt extension to 2030 to fuel AI-driven network investments

Zayo extended its debt maturity to 2030, boosting financial flexibility to invest in AI-driven network infrastructure. This move supports growth amid rising demand for fiber capacity.

Categorized in: AI News Finance
Published on: Aug 16, 2025
Zayo secures debt extension to 2030 to fuel AI-driven network investments

Zayo Extends Debt Maturity to 2030 to Support AI Infrastructure Growth

Zayo has reached a transaction support agreement (TSA) with creditors holding over 95% of its outstanding loans and notes. This agreement, finalized on July 22, 2025, modifies certain loan terms and extends the repayment deadlines to 2030.

Following the documentation finalization, Zayo will initiate a series of exchange offers related to the impacted debt securities. This restructuring is designed to provide the company with greater financial flexibility to continue investing in its network infrastructure, which is critical for advancements in artificial intelligence (AI) technologies.

Financial Strategy Focused on AI-Driven Demand

Jeff Noto, CFO of Zayo, emphasized the company’s strategic direction: “We are making important progress executing on our strategic plans and positioning Zayo as a leader in delivering purpose-built long-haul routes that are critical to the next generation of AI-enabled technologies.”

The extension aligns with Zayo’s pending acquisition of Crown Castle Fiber, a move expected to strengthen its financial position and increase capacity to meet the growing demand for fiber infrastructure driven by AI applications.

Noto added, “With the flexibility to pursue alternative financing options such as asset-backed securitization and project financing, we’ll be better positioned to invest in network growth and support our customers’ increasing connectivity needs.”

Implications for Investors and Financial Stakeholders

This debt extension offers investors and lenders a clearer timeline for repayment, reducing refinancing risk in the near term. It also signals Zayo’s commitment to supporting AI-related infrastructure, a sector experiencing heightened demand for reliable, high-capacity fiber networks.

Financial stakeholders can expect Zayo to leverage this flexibility to pursue growth opportunities and solidify its role in the digital infrastructure space over the coming years.

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