GTT Communications,Inc. (NYSE:GTT) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
On July10, 2017, GTT Communications,Inc. (the “Company”) entered into Amendment No.1 (the “Repricing Amendment”) to the Company’s existing Credit Agreement described below. The Repricing Amendment is with and among KeyBank National Association, as administrative agent (the “Agent”), certain lenders party to the Credit Agreement referred to below and KeyBank National Association, as the Additional Tranche B Term Loan Lender. The Repricing Amendment is to the Credit Agreement, dated as of January9, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified, the “Credit Agreement”) by and among (1)the Company, as borrower, (2)KeyBank National Association, as administrative agent, letter of credit issuer and a lender, (3)Credit Suisse AG, Cayman Islands Branch and SunTrust Bank, as the Syndication Agents, (4)KeyBank Capital Markets Inc., Credit Suisse Securities (USA) LLC, and SunTrust Robinson Humphrey,Inc., as Joint Lead Arrangers and Joint Bookrunners, (5)Citizens Bank, Wells Fargo Bank, National Association, and ING Capital LLC, as Documentation Agents, and (6)the other lenders party thereto.
Under the Repricing Amendment, 50% of the outstanding Term Loans as of July10, 2017 were either converted into Tranche B Term Loans (as defined in the Repricing Amendment) or repaid in full with proceeds from Additional Tranche B Term Loans made by the Additional Tranche B Term Loan Lender. The Repricing Amendment, among other things, reduces the applicable margin on the Tranche B Term Loans under the Credit Agreement to 225 basis points for Tranche B Term Loans that are Base Rate Loans (as defined in the Credit Agreement) and to 325 basis points for Tranche B Term Loans that are Eurodollar Loans (as defined in the Credit Agreement), and establishes a soft call protection through January10, 2018 of 1.0% for certain prepayments, refinancings and amendments for the primary purpose of reducing the effective yield on such indebtedness to less than the effective yield applicable to all or a portion of the Tranche B Term Loan, but excluding certain change of control transactions.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item 1.01 is hereby incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
10.1 Amendment No.1, dated as of July10, 2017, among GTT Communications,Inc., a Delaware corporation, as the borrower, the lenders party thereto, and KeyBank National Association, as the administrative agent and as the Additional Tranche B Term Loan Lender.
