Moody's affirms Global Tel*Link

Moody's Investors Service said it affirmed Global Tel*Link Corp.'s corporate family rating at B1 and its $20 million senior secured revolver due 2012, $120 million senior secured term loan due 2013 (increased from $110 million), $50 million senior secured delayed draw term loan due 2013, $10 million senior secured synthetic letter-of-credit facility due 2013 and $40 million senior secured delayed draw synthetic letter-of-credit facility due 2013 at B1 (LGD3, 31%).

The outlook is stable.

The affirmation follows the company's announcement of its intention to increase the size of its term facility by a further $10 million and distribute the additional proceeds to shareholders.

The agency said that while the incremental debt will increase Global Tel*Link's initial adjusted leverage to roughly 4.4x, the ratings have been affirmed because the increase in leverage is only modest and Moody's expects this metric to reduce to about 4x by the end of 2008, albeit primarily through earnings improvement rather than absolute debt reduction.

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