Zayo Announces Successful Issuance of Sustainability-Linked Debt Funding, Reinforcing Commitment to ESG
BOULDER, Colorado–(BUSINESS WIRE)–Zayo Group Holdings, Inc., a global leader in communications infrastructure, announced that it has successfully completed the commercialization of a $750 million senior sustainability term loan (“ESG Term Loan”). ”), the first ESG-linked term loan raised by an American 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 to reduce its annualized Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions to achieve the long-term goal of Net Zero d 2030. Zayo has also already established long-term goals for diversity initiatives. The interest rate on the ESG Term Loan is tied to both the achievement of science-based emission reduction targets and Zayo’s continued progress 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 leading provider of network connectivity and security services managed 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. ESG term lending aligns Zayo and its investors with common goals that broadly benefit the environment and society. The loan proceeds will partially fund Zayo’s ESG transformation 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. Officer, Zayo.
To learn more about Zayo’s commitment to ESG, read the company’s 2021 Sustainability Report here.
Zayo Group Holdings, Inc. provides essential bandwidth to the world’s most influential companies, fueling the innovations that are transforming our society. Zayo’s 134,000-mile network in North America and Europe includes extended metro connectivity to thousands of buildings and data centers. Zayo’s communications infrastructure solutions include dark fiber, private data networks, wavelengths, Ethernet, dedicated Internet access and data center connectivity solutions. Zayo owns and operates a Tier 1 IP backbone, and through its CloudLink service, Zayo provides low-latency private connectivity that connects enterprises to their public cloud environments. Zayo serves wireless and wireline carriers, media, technology, content, finance, healthcare and other large enterprises. For more information, visit zayo.com.