New York, May 07, 2013 -- Moody's Investors Service has downgraded the corporate family rating (CFR) for Global Tel*Link Corporation ("GTL") to B3 from B2 following the company's proposal to issue additional secured debt and return cash to its equity sponsor. Moody's has also assigned B2 (LGD3-35%) ratings to the company's proposed $630 million senior secured 1st lien credit facilities which consist of a $590 million senior secured 1st lien term loan due 2020 and $40 million senior secured revolver due 2018. As part of the rating action, Moody's has also assigned a Caa2 (LGD5-88%) rating to the proposed $255 million senior secured 2nd lien term loan due 2020. Moody's has also affirmed GTL's B3-PD probability of default rating (PDR) based on the change in capital structure to a mix of first and second lien debt versus an all first lien structrue prior. The proceeds from the debt offering will be used to fund a $275 million dividend to the company's equity sponsor and repay existing secured debt. The ratings are contingent on Moody's review of final documentation and no material change in the terms and conditions of the debt as advised to Moody's. The ratings outlook is stable.

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