GTT Communications announced it has secured a new $275 million delayed-draw term loan from some of its existing noteholders and lenders.
GTT said the new term loan would tide the company over as it works on closing the sale of its infrastructure division to I Squared Capital next year. In October, GTT reached a $2.15 billion deal to sell off its infrastructure division to I Squared Capital.
The infrastructure division consists of GTT’s Pan-European, North American, sub-sea and trans-Atlantic fiber network and data center infrastructure assets.
Former GTT CEO and President Rick Calder's aggressive acquisitions strategy came back to bite the company as it became saddled with $3.3 billion in debt as of its 2020 first quarter. In May, GTT announced Calder was leaving effective June 1. On July 6, GTT Chief Revenue Officer Ernie Ortega was named as the interim CEO while its board continues its search for a permanent CEO.
"We are pleased to announce this development and appreciate the support of our lenders and noteholders in providing us with their commitment for this new facility," Ortega said, in a statement. GTT expects to close the financing loan by Monday.
GTT Communications also announced it would refile a number of financial statements after conducting a review of certain accounting issues. The statements for full year 2017, 2018 and 2019 will have to be refiled, along with a report for the first quarter of this year. GTT said it would restate the consolidated financial statements for those periods "as soon as practicable."
Dating back three years, GTT has closed and integrated more than 10 acquisitions, and about 30 overall. Those deals nearly quadrupled the size of the company, but along the way GTT built up long-term debt.