GTT Communications has entered into a Restructuring Support Agreement with key stakeholders, including holders of a majority of its secured and unsecured debt and I Squared Capital, to implement a comprehensive restructuring of the company’s remaining balance sheet following completion of the pending sale of its infrastructure division.
GTT said it expects to expeditiously close the previously announced sale of its infrastructure division to I Squared Capital in the coming weeks, allowing the company to repay a significant portion of its secured debt.
Following the close of the sale of the infrastructure division, GTT and certain of its direct and indirect subsidiaries intend to commence prepackaged chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of New York to effectuate a deleveraging of GTT’s post-sale capital structure. GTT’s foreign businesses and operations outside of the U.S. are not included in the contemplated filing and will be unaffected by the chapter 11 cases. The company expects to emerge from this process after obtaining the necessary regulatory approvals for the restructuring.
GTT is operating and serving its customers in the U.S. and globally without interruption.
Ernie Ortega, Chief Executive Officer of GTT, stated, “This global agreement among each of our creditor constituencies resulted from extensive negotiations and reflects the ongoing commitment of our debtholders to the business. Our performance has been strong year-to-date, and we have a very competitive product portfolio in growing segments of the market, such as SD-WAN. To continue this momentum, we are working together with our debtholders to improve GTT’s financial health and this is a major milestone to accomplish this goal.”
https://www.gtt.net/us-en
GTT sells infrastructure division for $2.15 billion
GTT Communications will sell its infrastructure division to I Squared Capital, an independent global infrastructure investment firm, for $2.15 billion.
- The infrastructure division sale consists of selected network and data center assets accumulated from several GTT acquisitions, including Interoute, Hibernia, and KPN International, that comprise:
- A 103,000 route kilometer fiber network with over 400 points of presence, spanning 31 metro areas and interconnecting 103 cities across Europe and North America.
- Three transatlantic subsea cables, including GTT Express, the lowest latency route between Europe and North America.
- Fourteen Tier 3 data centers and over 100 colocation facilities.
- Offering a full suite of telecom and data infrastructure solutions to marquee clients.
Gautam Bhandari, managing partner at I Squared Capital stated, “Now more than ever, digital infrastructure is an essential asset class as societies across the globe rely heavily on high-speed digital bandwidth. This acquisition builds upon I Squared Capital’s overarching global digital infrastructure strategy and experience with complex carve-outs to expand the reach of our platforms across Asia, Europe and North America.”
