GTT TL B 1L USD 05/31/2025 & GTT TL B 1L EUR 05/31/2025

GTT Communications Inc

Credit, TMT, Event Driven/Special Sit


Publicly traded companies mentioned herein: AT&T Inc (T), Frontier Communications Corp (FTR), GTT Communications Inc (GTT), Verizon Communications (VZ)

Highlights

The presenter is long GTT Communications Inc European and US term loans expiring 05/31/2025. GTT has faced integration issues due to heavy M&A activity resulting in poor growth and customer retention challenges. Investor sentiment is near all-time lows, but the presenter is confident that the company can generate enough proceeds from the sale of two businesses it acquired over the past few years to pay down debt and distribute coupon payments in the coming years. As this occurs and GTT stabilizes by shifting its focus back to its traditional asset-light business, he expects the bonds to trade at par (the European bond trades in the mid-80 range and the US bond trades in the mid-70 range), offering a yield of 8% – 10%. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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