Zayo Nears Tentative Agreement with Creditors to Extend Debt Maturities and Address Acquisition Financing

Zayo Group Holdings is close to a deal with creditors that would extend the maturities on some of its $10 billion debt pile. The framework includes partial payments to secured lenders and a coupon bump for unsecured creditors in exchange for extended due dates. The plan also addresses how Zayo will finance its acquisition of Crown Castle fiber assets.

Zayo Group Holdings Inc., a leading fiber-network operator, is nearing a tentative agreement with creditors that would extend the maturities on some of its $10 billion debt pile. The proposed framework includes partial payments to secured lenders and a coupon bump for unsecured creditors in exchange for extended due dates. This deal also addresses how Zayo plans to finance its pending acquisition of Crown Castle Inc. fiber assets.

The tentative agreement would involve lenders of a nearly $5 billion secured loan due in 2027 receiving partial payments and unsecured creditors receiving a coupon bump. This extension would provide Zayo with more time to manage its debt and potentially improve its financial position [1].

The negotiations have been ongoing since April, following the announcement of the Crown Castle deal. The talks restarted after prior stalled discussions, involving an ad-hoc group of creditors advised by Houlihan Lokey Inc. and Gibson Dunn & Crutcher. Representatives with Zayo and Houlihan declined to comment, while a spokesperson for Gibson did not immediately respond to requests for comment [2].

Zayo has around $10 billion of debt, according to data compiled by Bloomberg. The 2027 term loan is quoted at around 96 cents on the dollar. Last year, Zayo put its non-North American operations into separate entities, receiving just over $1 billion in return through an intercompany loan and cash. Additionally, the firm completed a $1.58 billion asset-securitization deal in May after selling $1.4 billion of bonds backed by network infrastructure and customer contracts.

The proposed debt extension deal is a significant step for Zayo as it seeks to manage its debt and finance its strategic acquisitions. The outcome of these negotiations will be closely watched by investors and financial professionals.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/fiber-network-firm-zayo-nears-debt-extension-deal-with-creditors
[2] https://news.bloomberglaw.com/bankruptcy-law/fiber-network-firm-zayo-nears-debt-extension-deal-with-creditors