GTT Communications announced the completion of the acquisition of One Source Networks (OSN), a provider of global data, Internet, Session Initiation Protocol (SIP) trunking and managed services to Fortune 1000 companies. GTT paid $175 million for the acquisition, including approximately $164 million in cash and $11 million in GTT stock, plus approximately $5 million in cash for an estimated working capital surplus as of the closing date.
GTT funded the acquisition and refinancing of its existing debt with a new credit facility, which was successfully completed this week. The new credit facility consists of a seven-year $400 million Term Loan B, priced at LIBOR + 525bps with a 1% LIBOR floor, as well as a five-year $50 million revolving line of credit. The term loan was issued at a price of 98.0, and requires mandatory principal amortization of 1% per year until maturity.
“The addition of One Source Networks accelerates our growth strategy by bringing established relationships with multinational enterprises, broadening our portfolio of cloud networking services and expanding our global network,” said Rick Calder, GTT president and CEO.