GTT Communications Inc.’s debt is trading at distressed levels after a string of earnings misses and the resignation of its chief financial officer triggered a selloff, WSJ Pro Bankruptcy reported. The McLean, Va.-based telecommunications and internet service provider’s $575 million 7.875 percent unsecured bonds due 2024 hit an all-time low of 47.375 cents on the dollar Tuesday, down from 55 at the start of October and 75 in early August, according to MarketAxess. GTT’s $1.75 billion first-lien term loan is currently quoted at around 79 cents on the dollar, down from the high 80s level it had been trading at before the company’s August second-quarter earnings release, according to IHS Markit. GTT has been struggling since it acquired Interoute Communications Ltd., Europe’s largest cloud-services platform and the owner of a major fiber-optic cable network on the Continent, for $2.3 billion in cash in May of last year. Investors began selling off GTT’s stock and bonds after the company missed Wall Street consensus earnings estimates in its first-quarter 2019 results. The downward momentum accelerated in August following another earnings miss in the second quarter.
