MCLEAN, Va.--(BUSINESS WIRE)--GTT Communications, Inc. (NYSE: GTT), the leading global cloud networking provider to multinational clients, announced today that it has completed an amendment to its credit facility to lower the interest rate on its $430 million term loan and $50 million revolving line of credit, resulting in savings of over $2 million per year. The 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.
“We are very pleased to take advantage of strong market demand for our debt, despite challenging overall market conditions,” said Rick Calder, GTT president and CEO. “These savings are significant and will give us additional flexibility to execute on our growth strategy.”
There is no change to outstanding debt, maturities or covenants as a result of this amendment. Total fees and expenses associated with the amendment are expected to be less than $1 million. 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.
About GTT
GTT provides multinationals 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, ranked in the top five worldwide, connects clients to any location in the world and any application in the cloud. GTT delivers an outstanding client experience by living its core values of simplicity, speed and agility. For more information on how GTT is redefining global communications, please visit www.gtt.net.