Global Tel Link (GTL), the US provider of telephone services to prison inmates, is proposing a US$655m senior secured credit facility, according to a Moody’s report.
The credit facility includes a US$605m loan due 2018 and a US$50m revolver due…
Global Tel Link (GTL), the US provider of telephone services to prison inmates, is proposing a US$655m senior secured credit facility, according to a Moody’s report.
The credit facility includes a US$605m loan due 2018 and a US$50m revolver due 2017.
According to the Moody’s report, the credit facility will be used “to partially finance” the buyout of GTL by private equity firm American Securities LLC (AS).
Moody’s said that AS will provide US$400m of equity with approximately US$10m being carried over from management. The transaction is expected to be completed in January 2012.
The report noted that GS Direct (part of Goldman Sachs) and private equity firm Veritas Capital acquired GTL in 2009.
Moody’s assigned GTL a B2 corporate family rating, a B3 probability of default rating and a B2 rating to the proposed credit facility.
Bloomberg reported that Credit Suisse is arranging the financing.
A Credit Suisse spokesman declined to comment.
