GTT has completed an effort to reprice its debt, lowering the interest rate on its $430 million term loan and $50 million on its revolving line of credit. As a result, GTT will save over $2 million a year.
The new applicable rate for term loans is LIBOR (subject to a floor of 1.00 percent) plus 4.75 percent, which is 0.50 percent lower than the previous rate.
GTT said there's no change to outstanding debt, maturities or covenants as a result of this amendment, which includes less than $1 million in fees.
Although GTT did not call out specific merger and acquisition opportunities, Rick Calder, president and CEO of GTT said that this restructuring will "give us additional flexibility to execute on our growth strategy."
The service provider's growth strategy has centered on a two-part recipe of organic network growth and targeted acquisitions.
Calder told investors earlier this month during the Cowen and Company 44th Annual Technology, Media & Telecom Conference that the company has a "funnel" of over 50 M&A possibilities.
Over the past decade, GTT has made several acquisitions to beef up its capabilities and overall network reach.
These acquisitions include a wide range of players, including smaller operators like Telnes Broadband, which it recently completed, or others that are half of GTT's size. The service provider has also purchased larger providers such as One Source Networks, which boasted $74.6 million in revenue, for example.
What's been interesting to watch about GTT's M&A strategy is that it has been able to integrate various assets into its fold within two quarters.
For more:
- see the release
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