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GTT Reports Second Quarter 2014 Financial Results And Completes Debt Refinancing

GTT Communications, Inc. (“GTT”) (NYSE MKT: GTT), the leading global cloud networking provider to multinational enterprises, today announced its financial results for the second quarter ended June 30, 2014, and the completed refinancing of its existing debt. Highlights include:

2Q14 Highlights

  • Revenue increased 21 percent to $48.1 million compared to $39.7 million in the second quarter of 2013
  • Gross Margin increased 470 basis points to 38.7% compared to 34.0% in the second quarter of 2013
  • Adjusted Earnings before Interest Taxes Depreciation and Amortization (“EBITDA”)* increased by 67 percent to $8.6 million compared to $5.1 million in the second quarter of 2013
  • Adjusted EBITDA margin improved 490 basis points to 17.8% from 12.9% in the second quarter of 2013
  • Completed a follow-on public offering of 3,450,000 shares of common stock, generating net proceeds of $25.0 million

Debt Refinancing Highlights

  • On August 6, 2014, GTT completed a senior debt financing, replacing all of the existing senior and mezzanine debt with a $170 million facility consisting of: a $110 million term loan, a $15 million revolving line-of-credit, a $15 million delayed draw term loan, and a $30 million accordion
  • Tiered pricing tied to net leverage ratio with initial pricing of 4.5%, as compared to the 8% weighted average rate in the previous debt facilities
  • Eliminated all outstanding warrants by purchasing 1.2 million warrants and converting the remaining 1.2 million warrants into 0.9 million common shares

* See “Annex A: Non-GAAP Financial Information-Adjusted EBITDA” for more information regarding the computation of Adjusted EBITDA.

“We delivered another record quarter with strong revenue and EBITDA increases and incremental margin expansion,” stated Rick Calder, President and CEO. “We are winning new multinational clients and growing our existing client base, and expanding our sales organization within both our Americas and EMEA/APAC business units. We are executing our strategy to extend ubiquitous network connectivity worldwide, to expand our cloud networking service portfolio, and to deliver outstanding service to our clients with simplicity, speed and agility.”

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