S&P rates GTT loan B-

S&P said it assigned its B- issue-level rating and 3 recovery rating to GTT Communications Inc. and wholly owned subsidiary GTT Communications BV's $140 million incremental senior secured term loan B due 2025. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

The company will use the proceeds to repay $129 million of borrowings under its $250 million senior secured revolving credit facility due 2023 and pay related fees and expenses.

“Because the transaction will not affect GTT's credit metrics, our B- issuer credit rating and negative outlook on the company remain unchanged. That said, we view the transaction favorably because it will bolster the company's liquidity position by freeing up revolver availability,” said S&P in a press release.

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