GTT Communications completed its acquisition of Hibernia Networks, a provider of global, high-speed network connectivity solutions and owner of terrestrial and subsea fiber assets.
“The addition of Hibernia Networks advances GTT’s growth strategy,” stated Rick Calder, GTT president and CEO. “The transaction expands GTT’s top five global IP network, adds products to our cloud networking portfolio and provides a strong recurring revenue base via established relationships with multinational clients. Our clients will also benefit from a team with deep technical expertise and a proven track record of delivering exceptional client service.”
According to a related 8-K filing, KeyBank as served administrative agent and as an L/C issuer for the transaction. KeyBanc Capital Markets, Credit Suisse Securities (USA) and SunTrust Robinson Humphrey were joint lead arrangers and joint bookrunners. Credit Suisse AG, Cayman Islands Branch and SunTrust Bank were the syndication agents. Citizens Bank, Wells Fargo Bank and ING Capital were the documentation agents.
The credit agreement provides for a $700 million term loan facility and a $75 million revolving line of credit facility (which includes a $25 million letter of credit facility). In addition, the company may request an incremental term loan and/or incremental revolving loan commitments in an aggregate amount not to exceed the sum of $150 million and an unlimited amount that is subject to pro forma compliance with certain net secured leverage ratio tests, provided, however, that incremental revolving loan commitments may not exceed $25 million.
The proceeds of the term loan facility were used on January 9, 2017 to pay a portion of the consideration payable in the company’s acquisition of Hibernia NGS, to refinance the company’s existing credit facility, to refinance the Hibernia and its subsidiaries’ existing credit and to pay costs and expenses associated with such transactions.
Follow the story: