Global Tel Link nets new 2nd-lien term loan, 1st-lien upgrade by Moody's

Loan issuer Global Tel*Link Corp., which does business as ViaPath Technologies, plans to use proceeds raised from a new $215 million second-lien term loan facility to fund a shareholder dividend, according to Moody's.

The rating agency on Feb. 7 upgraded the issuer's first-lien facility rating to B1 from B2 and affirmed the second-lien rating at Caa2 and the corporate rating at B3, with a stable outlook. Moody's said the first-lien upgrade "reflects the additional debt cushion provided by the new second-lien credit facility in a default scenario."

S&P Global Ratings said the company's ratings were not affected by the additional second-lien debt. Current corporate and first-lien ratings are B, and the second-lien rating is CCC+. The outlook is stable.

In 2018, Global Tel Link privately placed a second-lien term loan facility as part of a refinancing transaction. The company also issued a covenant-lite first-lien term loan due November 2025 at pricing of L+425, with 0% Libor floor. Credit Suisse is administrative agent on the first-lien term loan.

Global Tel Link, backed by American Securities, is a provider of telecommunications and technology services to the corrections industry. The company announced in January that it changed its name to ViaPath Technologies.