On January 9, 2017, GTT Communications, Inc. entered into a Credit Agreement by and among the company, as borrower, KeyBank National Association, as the administrative agent and as an LC issuer, KeyBanc Capital Markets Inc., Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey, Inc., as joint lead arrangers and joint bookrunners, Credit Suisse AG, Cayman Islands Branch, and SunTrust Bank, as the syndication agents, Citizens Bank, Wells Fargo Bank, National Association, and ING Capital LLC, as the documentation agents and the lenders party thereto. The Credit Agreement provides for a $700 million term loan facility and a $75 million revolving line of credit facility (which includes a $25 million letter of credit facility). In addition, the company may request incremental term loan and/or incremental revolving loan commitments in an aggregate amount not to exceed the sum of $150 million and an unlimited amount that is subject to pro forma compliance with certain net secured leverage ratio tests, provided, however, that incremental revolving loan commitments may not exceed $25 million. The proceeds of the term loan facility were used on January 9, 2017 to pay a portion of the consideration payable in the Company's acquisition of Hibernia NGS Limited (Hibernia), which is described below, to refinance the company's existing credit facility, to refinance the existing credit facility of Hibernia and its subsidiaries and to pay costs and expenses associated with such transactions. The maturity date of the term loan facility is January 9, 2024 and the maturity date of the revolving loan facility is January 9, 2022. Each maturity date may be extended per the terms of the Credit Agreement. The company may prepay loans under the Credit Agreement at any time, subject to certain notice requirements and LIBOR breakage costs. If within six months after entering into the Credit Agreement certain prepayments of the term loans made on January 9, 2017 are made or any amendment reduces the effective yield applicable to all or a portion of such term loans, such prepayment or repriced portions of the term loans will be subject to a penalty equal to 1.00% of the outstanding term loans being prepaid or repriced. At the company's election, loans under the Credit Agreement may also be made as either Base Rate Loans or Eurodollar Loans. The applicable margin for term loans is 3.00% for Base Rate Loans and 4.00% for Eurodollar Loans. All term loan Eurodollar Loans are subject to a floor of 1.00%. The applicable margin for revolving loans is 2.50% for Base Rate Loans and 3.50% for Eurodollar Loans. The obligations of the company under the Credit Agreement are guaranteed by its subsidiaries GTT Americas LLC, GTT Global Telecom Government Services, LLC, Hibernia Atlantic U.S. LLC, Hibernia, Hibernia Atlantic Cable System Limited, Hibernia Atlantic Communications (Canada) Company, Hibernia International Assets Inc., Hibernia Atlantic (UK) Limited, Hibernia Media (UK) Limited, and Hibernia Networks (Netherlands) B.V., the other domestic subsidiaries of the Company that shall from time to time become a guarantor, and the foreign subsidiaries designated by the Company and acceptable to the administrative agent that shall from time to time become a guarantor (collectively, the Guarantors). The obligations of the company under the Credit Agreement are secured by substantially all of the tangible and intangible assets of the company and the Guarantors, including by a pledge of 100% of the equity interests of the domestic subsidiaries of the company and Guarantors and 65% of the equity interests of the first-tier foreign subsidiaries of the company and the Guarantors. The Credit Agreement contains customary financial and operating covenants, including covenants restricting the incurrence of debt, imposition of liens, the payment of dividends and entering into affiliate transactions. The revolving loan facility includes a consolidated net secured leverage ratio during any fiscal quarter in which the aggregate amount of revolving loans, face amount of all letters of credit and unpaid reimbursement obligations for letters of credit exceeds 30% of the revolving loan facility commitment. The term loan facility does not include a financial maintenance covenant. The Credit Agreement also contains customary events of default, including among others nonpayment of principal or interest, material inaccuracy of representations and failure to comply with covenants. If an event of default occurs and is continuing under the Credit Agreement, the entire outstanding balance may become immediately due and payable.