BOULDER, Colo.--(BUSINESS WIRE)--Zayo Group Holdings, Inc. (NYSE:ZAYO), a global provider of bandwidth infrastructure, today announced that as part of its mobile infrastructure expansion strategy the company will provide fiber-to-the-tower (FTT) to more than 500 towers to serve a major wireless carrier customer. More than 350 of the towers will be located in the Greater Seattle area, with 90 percent as single tenant expansion sites.
The underlying wireless customer sale (closed in the June fiscal quarter) has a contract term of 20 years and is expected to generate an initial unlevered cash flow yield of approximately 11 percent per annum on $61 million of expected capital investment, based solely on the initial anchor sale. Zayo expects to utilize the expansion to serve additional wireless tenants at these towers, plus provide fiber-based services to non-wireless customers such as universities, school districts, hospitals and content providers. The capital investment will primarily fund the construction of over 350 route miles of new fiber network.
Zayo’s FTT solutions and extensible network are addressing wireless carriers’ requirements for scalable, high-capacity infrastructure. After this expansion, Zayo will have approximately 8,000 towers, including those under construction, connected to its fiber network.
“Zayo has a successful history of leveraging assets and capital associated with signed customer transactions,” said Matt Erickson, president and COO of Zayo’s Physical Infrastructure segment. “Our extensible network will have the capacity not only to provide FTT infrastructure for one of the nation’s leading wireless carriers but also the fiber capacity that other existing and prospective customers need as they grow.”
Seattle and the Pacific Northwest are widely considered as one of the world’s most connected regions as the demand for high-capacity bandwidth continues to increase. Zayo’s Seattle network expansion will increase its metro network footprint to more than 900 route miles and provide capacity to deliver high-performance connectivity to businesses in an area that stretches from South Tacoma to Everett to Bellevue and the Eastside communities.
For more information on Zayo’s network, visit zayo.com.
About Zayo Group
Zayo Group Holdings, Inc. (NYSE: ZAYO) provides bandwidth infrastructure services, including fiber and bandwidth connectivity, colocation and cloud services to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 84,000-mile network in the U.S. and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud services in its carrier-neutral data centers. Zayo provides clients with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth and services. For more information, visit zayo.com.
Forward Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words such as "believe," "expect," "plan," "continue," "will," "should," and similar expressions are intended to identify our forward-looking statements. No assurance can be given that future results expressed or implied by the forward-looking statements will be achieved and actual results may differ materially from those contemplated by the forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. For additional information on these and other factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our final prospectus dated March 13, 2015. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.