GTT COMMUNICATIONS,INC. (NYSE:GTT) Files An 8-K Entry into a Material Definitive AgreementItem 7.01. Entry into a Material Definitive Agreement.
Item 7.01, below, is incorporated herein.
Item 7.01 Unregistered Sale of Equity Securities
On March25, 2018 GTT Communications, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with Aleph Tiger Investors LP (“Tiger LP”), to which Tiger LP agreed to purchase 3,948,449 shares of common stock of the Company (the “Purchased Shares”) for an aggregate purchase price of $175.0 million. The proceeds from the sale of the Purchased Shares will be used by the Company to partially fund its previously announced acquisition of Interoute Communications Holdings S.A.(“Interoute”) from Emasan AG and Turbo Holdings Lux II Sarl (the “Acquisition”) and to pay related transaction expenses. The Company will issue the shares at the closing of the Acquisition, and the issuance is subject to the substantially concurrent consummation of the Acquisition and certain other conditions.
The investors group in Tiger LP is led by affiliates of Aleph Capital Partners LLP (“Aleph”) and Crestview Partners (“Crestview”). Aleph and Crestview are significant shareholders of Interoute. The price per share to Tiger LP will be $44.3212, which is the same price per share used for purposes of establishing the conversion price of the Company’s previously announced SeriesA preferred stock financing. Like the Purchased Shares, the proceeds of the SeriesA preferred stock will provide funds for the Company to finance, in part, the Acquisition.
The Purchased Shares will be restricted securities under the Securities Act of 1933, as amended, and will be issued in reliance on the exemption from registration under the Securities Act provided by Section4(2)of the Securities Act. to an Investor Rights Agreement to be entered into among the Company and Tiger LP on the issue date, the holders of the Purchased Shares will be entitled to certain registration rights with respect to the Purchased Shares.
If the Acquisition is not consummated, the Securities Purchase Agreement will terminate, and the Company will not issue any of the Purchased Shares.
Cautionary Statement
The foregoing description of the Securities Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the Securities Purchase Agreement which is filed as Exhibit10.1 to this Current Report on Form8-K, which is incorporated herein by reference.
The Securities Purchase Agreement has been included to provide investors with information regarding its terms. It is not intended to provide any other factual information about the Company or Tiger LP. The representations, warranties and covenants contained in the Securities Purchase Agreement (1)were made by the parties only for purposes of the Securities Purchase Agreement, (2)were made solely for the benefit of the parties to the Securities Purchase Agreement, (3)may be subject to limitations agreed upon by the contracting parties, including being qualified by confidential disclosures exchanged between the parties in connection with the execution of the Securities Purchase Agreement (such disclosures include information that has been included in public disclosures, as well as additional non-public information), (4)may have been made for the purposes of allocating contractual risk between the parties to the Securities Purchase Agreement instead of establishing these matters as facts and (5)may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Accordingly, the Securities Purchase Agreement is included with this filing only to provide investors with information regarding the terms of the Securities Purchase Agreement, and not to provide investors with any other factual information regarding the Company, Tiger LP or their respective businesses. Investors are not third party beneficiaries of the Securities Purchase Agreement and should not rely on the representations, warranties, covenants or agreements in the Securities Purchase Agreement or any descriptions thereof as characterizations of the actual state of facts or condition of the Company or Tiger LP or any of their respective subsidiaries or affiliates. Additionally, the representations, warranties, covenants, agreements, conditions and other terms of the Securities Purchase Agreement may be subject to subsequent waiver or