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Zayo to Significantly Expand Fiber-to-the-Tower Footprint in Nashville

BOULDER, Colo. – July 22, 2015 – Zayo Group Holdings, Inc. (NYSE:ZAYO), a global provider of bandwidth infrastructure, today announced the expansion of its fiber-to-the-tower (FTT) footprint in Nashville, Tennessee to serve an anchor wireless service provider. This is Zayo’s first FTT sale in Nashville. Zayo will extend its existing 120-route mile network to provide this FTT service to 147 new towers. Additionally, Zayo is pursuing opportunities to leverage its Nashville network to provide dark fiber service to small cell nodes.

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 six percent per annum on $39 million of expected capital investment, based solely on the initial anchor sale. Zayo estimates the unlevered cash flow yield on the incremental small cell opportunity to be 17 percent per annum, highlighting the attractive follow-on economics. In addition, Zayo will be able to leverage its Nashville network to provide service to second tenants on the 147 towers and to provide additional lit and dark fiber services that leverage the 350 route miles of newly constructed network.

Zayo’s FTT solutions and extensible network, which includes approximately 8,000 towers nationwide, are addressing wireless carriers’ requirements for scalable, high-capacity infrastructure.

“Zayo continues to support our customers’ requirements for network capacity that can scale as they grow,” said Dave Jones, SVP of Zayo’s Mobile Infrastructure Business. “We expect additional services to be provided on this network which will increase the yield over time.  We’ve had significant interest in both small cell deployments and additional FTT services to these 147 towers.”

Nashville, long known for its thriving music industry, has experienced significant growth in healthcare, technology and automotive industries. Zayo’s fiber network expansion will significantly enhance its ability to deliver high-capacity connectivity to businesses, school districts and other government entities in the broader metropolitan area.

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.