GTT Communications, Inc. (NYSE: GTT) has completed an amendment to its credit facility. The amendment, which will give the leading global cloud networking provider the flexibility to pursue its growth strategy, will lower the interest rate on its $430 million term loan and $50 million revolving line of credit.
GTT’s new applicable rate for term loans is LIBOR (subject to a floor of 1.00%) plus 4.75%, which is 0.50% lower than the previous rate. The new applicable rate for revolving loans is LIBOR (no floor) plus 4.25%, which is 0.50% lower than the previous rate. As a result, GTT will take advantage of savings of over $2 million per year.
“We are very pleased to take advantage of strong market demand for our debt, despite challenging overall market conditions,” commented Rick Calder, GTT president and CEO. “These savings are significant and will give us additional flexibility to execute on our growth strategy.”
Total fees and expenses associated with the amendment are expected to be less than $1 million. There is no change to outstanding debt, maturities or covenants as a result of this amendment. The amendment also includes a prepayment premium, also known as a “soft call,” of 1.00% in the event of another repricing event (as defined in the agreement) on or before the six-month anniversary of the amendment.
GTT provides global enterprises with a better way to reach the cloud through its suite of cloud networking services, including wide area networking, Internet, managed services and voice services. The company’s Tier 1 IP network is ranked in the top five worldwide. GTT connects clients to any location in the world and any application in the cloud. For more information on how GTT is redefining global communications, visit www.gtt.net.