BOULDER, Colo. - September 16, 2015 - Zayo Group Holdings, Inc. (NYSE: ZAYO), a global provider of bandwidth infrastructure, today announced that it has sold dark fiber services on its Omaha to Dallas route, which is currently in development, to seven additional customers since the initial anchor customer sale in mid 2014. The fiber route will connect Omaha, Kansas City, Bentonville, Arkansas, Tulsa and Dallas.
“Most of Zayo’s committed capital projects are tied to signed customer contracts with an associated positive return,” explained Ken desGarennes, CFO at Zayo. “With the Omaha to Dallas project, a portion of the capital was speculative in our view, meaning we needed follow-on sales to achieve a desired return profile.”
“These follow-on customer sales result in this strategic project achieving two key milestones - a positive unlevered return on the expected net capital investment and a cash flow yield of approximately 10 percent,” said Matt Erickson, Zayo’s Co-COO and president of Physical Infrastructure. “In addition, we have a robust funnel of additional sales opportunities on this unique route.”
The Omaha to Dallas route is scheduled to be completed in late 2016, ahead of the originally announced 2017 completion.
Zayo’s intercity dark fiber network, which includes approximately 15,000 route miles of owned network nationwide, addresses the requirements of enterprise, carrier, cable and content companies for scalable, high-capacity infrastructure. Zayo has announced additional intercity construction projects, including Sacramento to Salt Lake City, Washington D.C. to Atlanta and Phoenix to Dallas.
For more information on Zayo, please visit www.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.