New Issue: GTT Communications sells upsized $125 million tap of 7 7/8% notes at 106 to yield 6.498%

By Paul A. Harris

Portland, Ore., Sept. 25 – GTT Communications, Inc. priced an upsized $125 million tack-on to its 7 7/8% senior notes due Dec. 31, 2024 (Caa1/CCC+) at 106 to yield 6.498% on Monday, according to a syndicate source.

The issue size was increased from $100 million.

The reoffer price came at the rich end of the 105.5 to 106 price talk.

Credit Suisse Securities (USA) LLC, Citizens Bank, KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.

The McLean, Va.-based cloud networking services provider plans to use the proceeds for general corporate purposes, including an acquisition.

Issuer:	GTT Communications, Inc.
Face amount:	$125 million, increased from $100 million
Proceeds:	$132.5 million
Security description:	Add-on to 7 7/8% senior notes due Dec. 31, 2024
Maturity:	Dec. 31, 2024
Bookrunners:	Credit Suisse Securities (USA) LLC, Citizens Bank, KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
Co-manager:	ING
Coupon:	7 7/8%
Price:	106
Yield to worst:	6.498%
Spread:	461 bps
First call:	Dec. 31, 2019 at 105.906
Equity clawback:	40% at 107.875 until Dec. 1, 2019
Trade date:	Sept. 25
Settlement date:	Oct. 10
Ratings:	Moody's: Caa1
	S&P: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	105.5 to 106
Marketing:	Quick to market
Original issue:	$300 million priced at par on Dec. 8, 2016
Previous add-on:	$150 million priced at 106 to yield 6.568% on May 25, 2017
Total issue size:	$575 million

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