GTT plans $775 million credit facility, $300 million senior notes

By Sara Rosenberg

New York, Nov. 15 – GTT Communications Inc. expects to get a new $775 million credit facility and issue $300 million of senior unsecured notes to help fund its acquisition of Hibernia Networks and refinance existing debt, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

KeyBanc Capital Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the debt.

The credit facility consists of a $75 million revolver and a $700 million term loan B.

The notes are backed by a senior unsecured bridge loan facility.

At closing, the ratio of total net debt to adjusted EBITDA is expected to be about 4.5 times using pro forma combined third-quarter 2016 annualized adjusted EBITDA plus expected cost synergies.

Within one year after closing, the company anticipates the ratio of total net debt to adjusted EBITDA to be at or below 4 times due to continued adjusted EBITDA growth and cash generation.

Closing is expected by the end of first quarter 2017, subject to regulatory approvals and other customary conditions.

GTT is a McLean, Va.-based cloud networking provider. Hibernia is a provider of high-speed network connectivity solutions and an owner of terrestrial and subsea fiber assets.

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