0001193125-19-302836.txt : 20191129 0001193125-19-302836.hdr.sgml : 20191129 20191127205158 ACCESSION NUMBER: 0001193125-19-302836 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20191129 DATE AS OF CHANGE: 20191127 GROUP MEMBERS: BENJAMIN STEIN GROUP MEMBERS: SPRUCE HOUSE CAPITAL LLC GROUP MEMBERS: SPRUCE HOUSE PARTNERSHIP LP GROUP MEMBERS: ZACHARY STERNBERG SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: GTT Communications, Inc. CENTRAL INDEX KEY: 0001315255 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 202096338 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-80681 FILM NUMBER: 191259559 BUSINESS ADDRESS: STREET 1: 7900 TYSONS ONE PLACE STREET 2: SUITE 1450 CITY: MCLEAN STATE: VA ZIP: 22102 BUSINESS PHONE: (703) 442-5500 MAIL ADDRESS: STREET 1: 7900 TYSONS ONE PLACE STREET 2: SUITE 1450 CITY: MCLEAN STATE: VA ZIP: 22102 FORMER COMPANY: FORMER CONFORMED NAME: Global Telecom & Technology, Inc. DATE OF NAME CHANGE: 20061018 FORMER COMPANY: FORMER CONFORMED NAME: Mercator Partners Acquisition Corp. DATE OF NAME CHANGE: 20050124 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SPRUCE HOUSE INVESTMENT MANAGEMENT LLC CENTRAL INDEX KEY: 0001543170 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 435 HUDSON STREET STREET 2: 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10014 BUSINESS PHONE: 646-442-6727 MAIL ADDRESS: STREET 1: 435 HUDSON STREET STREET 2: 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10014 SC 13D/A 1 d838973dsc13da.htm AMENDMENT NO. 4 TO SCHEDULE 13D Amendment No. 4 to Schedule 13D

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 4)*

 

 

GTT Communications, Inc.

(Name of Issuer)

Common Stock, par value $.0001 per share

(Title of Class of Securities)

362393100

(CUSIP Number)

Spruce House Investment Management LLC

435 Hudson Street, Suite 804

New York, New York 10014

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

November 27, 2019

(Date of Event which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rules 13d-1(e), 13d-1(f) or 13d-1(g), check the following box.  ☐

 

 

 


CUSIP No. 362393100

 

  1   

NAME OF REPORTING PERSON.

 

Spruce House Investment Management LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☒

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

13,945,000

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

13,945,000

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

13,945,000

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11);

 

24.6%1

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO, IA

 

1 

Based on an aggregate of 56,650,772 outstanding shares of common stock as of November 8, 2019 as reported on the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2019.


CUSIP No. 362393100

 

  1   

NAME OF REPORTING PERSON.

 

Spruce House Capital LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☒

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

13,945,000

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

13,945,000

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

13,945,000

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11);

 

24.6%1

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

1 

Based on an aggregate of 56,650,772 outstanding shares of common stock as of November 8, 2019 as reported on the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2019.


CUSIP No. 362393100

 

  1   

NAME OF REPORTING PERSON.

 

The Spruce House Partnership LP

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☒

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

WC

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

13,945,000

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

13,945,000

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

13,945,000

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11);

 

24.6%1

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

PN

 

1 

Based on an aggregate of 56,650,772 outstanding shares of common stock as of November 8, 2019 as reported on the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2019.


CUSIP No. 362393100

 

  1   

NAME OF REPORTING PERSON.

 

Zachary Sternberg

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☒

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States of America

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

13,945,000

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

13,945,000

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

13,945,000

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11);

 

24.61

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN, HC

 

1 

Based on an aggregate of 56,650,772 outstanding shares of common stock as of November 8, 2019 as reported on the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2019.


CUSIP No. 362393100

 

  1   

NAME OF REPORTING PERSON.

 

Benjamin Stein

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☒

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States of America

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

11,167

     8   

SHARED VOTING POWER

 

13,945,000

     9   

SOLE DISPOSITIVE POWER

 

11,167

   10   

SHARED DISPOSITIVE POWER

 

13,945,000

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

13,956,167

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11);

 

24.6%1

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN, HC

 

1 

Based on an aggregate of 56,650,772 outstanding shares of common stock as of November 8, 2019 as reported on the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2019.


AMENDMENT NO. 4 TO SCHEDULE 13D

This amendment to Schedule 13D is being filed by Spruce House Investment Management LLC (the “Investment Manager”), Spruce House Capital LLC (the “General Partner”), The Spruce House Partnership LP (the “Fund”), Zachary Sternberg and Benjamin Stein (the “Managing Members”) (collectively, the “Reporting Persons”, and each, a “Reporting Person”).

The Schedule 13D (the “Schedule”) filed with the Securities and Exchange Commission on December 26, 2018, as amended by Amendment No. 1 filed on January 27, 2019, Amendment No. 2 filed on April 22, 2019 and Amendment No. 3 filed on August 15, 2019, is hereby amended and supplemented by the Reporting Persons as set forth below in this Amendment No. 4. This amendment is filed by the Reporting Persons in accordance with Rule 13d-2 of the Securities Exchange Act of 1934, as amended, and refers only to information that has materially changed since the filing of the Schedule 13D. The items identified below, or the particular paragraphs of such items which are identified below, are amended as set forth below. Unless otherwise indicated, all capitalized terms used and not defined herein have the respective meanings assigned to them in the Schedule.

Except as specifically amended by this Amendment No. 4, the Schedule is unchanged.

 

Item 3

Source and Amount of Funds or Other Considerations

The disclosure in Item 3 is hereby amended to add the following to the end thereof:

The information set forth in Item 5(c) of this amendment to Schedule 13D is incorporated herein by reference. Such purchases were funded using working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business).

 

Item 4

Purpose of Transaction

The disclosure in Item 4 is hereby amended to add the following to the end thereof:

On September 30, 2019, Benjamin Stein was granted 1,858 shares of restricted stock pursuant to the Issuer’s Stock Compensation Plan. The shares vested in whole upon grant.

The other transactions described in Item 5(c) below were effectuated for investment purposes in the regular course of such entity’s business.

 

Item 5

Interest in Securities of the Issuer

The disclosure in Items 5(a) and 5(b) is hereby amended and restated in its entirety to read as follows:

(a) and (b) The responses of each of the Reporting Persons with respect to Rows 11, 12, and 13 of the cover pages of this Schedule 13D that relate to the aggregate number and percentage of common stock (including but not limited to footnotes to such information) are incorporated herein by reference.

The responses of each of the Reporting Persons with respect to Rows 7, 8, 9, and 10 of the cover pages of this Schedule 13D that relate to the number of common stock as to which each of the persons or entities referenced in Item 2 above has sole or shared power to vote or to direct the vote of and sole or shared power to dispose of or to direct the disposition of (including but not limited to footnotes to such information) are incorporated herein by reference.

13,945,000 shares of Common Stock are held in the account of the Fund, a private investment fund managed by the Investment Manager, and may be deemed to be beneficially owned by the Investment Manager, the General Partner of the Fund, and by the Managing Members of the Investment Manager and the General Partner. Each of the Investment Manager, the General Partner, and the Managing Members expressly disclaims beneficial ownership of the shares held by the Fund.

Benjamin Stein may be deemed to beneficially own 13,956,167 shares of Common Stock, including 11,167 shares of restricted stock. He may be deemed to have (a) the sole power to vote or direct the vote of and to dispose of or direct the disposition of 11,167 shares of Common Stock, including 11,167 shares of restricted stock and (b) the shared power to vote or direct the vote of and to dispose of or direct the disposition of 13,945,000 shares of Common Stock held by the Fund. He disclaims beneficial ownership of 13,945,000 shares of Common Stock held by the Fund, and this report shall not be deemed to be an admission that such person is the beneficial owner of such securities.


The disclosure in Item 5(c) of the Schedule 13D is hereby supplemented by adding the following at the end thereof:

On September 30, 2019, Benjamin Stein was granted 1,858 shares of restricted stock pursuant to the Issuer’s Stock Compensation Plan. The shares vested in whole upon grant.

 

Item 6

Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer

The disclosure in Item 6 is hereby amended to add the following to the end thereof:

On November 27, 2019, the Fund and the Issuer entered into Amendment No. 2 to the Investor Rights Agreement, dated May 31, 2018 (“Amendment No. 2”). Amendment No. 2 increases the maximum number of the Issuer’s equity securities that can be acquired by the Fund and its controlled affiliates from 25% to 30% of the Issuer’s total voting power. Amendment No. 2 also removes the Issuer’s obligation to file a shelf registration statement covering the shares held by the Fund by a date certain, and replaces it with an obligation to file a shelf registration only promptly after receiving a request from the Fund for such a shelf registration statement. This description of Amendment No. 2 to the Investor Rights Agreement is qualified in its entirety by reference to the full text of Amendment No. 2 to the Investor Rights Agreement, which is attached hereto as Exhibit 99.2.1 and incorporated by reference herein.

On November 27, 2019, the Issuer granted consent (the “Consent Letter”) to the acquisition by the Fund and its controlled affiliates of common stock of the Issuer, at any time and from time to time, so long as the total beneficial ownership of the Fund and its controlled affiliates in the Issuer’s common stock, after giving effect to such acquisitions, would not exceed 30% of the Issuer’s Total Voting Power at such time. In addition, the Consent Letter provides that from the date of the letter and continuing until receipt of approval (or confirmation that no approval is required) from the Republic of Austria Federal Ministry for Digital and Economic Affairs (Bundesministerium Digitalisierung und Wirtschaftsstandort) and from the state public utility commission for the Commonwealth of Virginia required in order for the Fund to acquire common stock representing 25% or more of the Issuer’s Total Voting Power, in any vote or action by written consent of the stockholders of the Issuer (including, without limitation, with respect to the election of directors), the Fund shall, and shall cause its controlled affiliates to, vote or execute a written consent with respect to the Voting-Restricted Shares held by the Fund and its controlled affiliates in accordance with the recommendation of the Issuer’s board or, if the Issuer’s board does not make a recommendation with respect to a particular matter, in proportion to the votes cast by the holders of the Issuer’s common stock other than the Fund and its controlled affiliates. The Fund also granted a related proxy to the Issuer. For purposes of this Consent Letter, (i) “Total Voting Power” means the aggregate number of votes which may be cast by all holders of outstanding common stock and all other securities of the Issuer entitled to vote in the election of directors and (ii) “Voting-Restricted Shares” means all shares of the Issuer’s common stock beneficially owned by the Fund and its controlled affiliates (and with respect to which such entities have voting rights) in excess of 24.9% of the Issuer’s Total Voting Power. This description of the Consent Letter is qualified in its entirety by reference to the full text of the Consent Letter, which is attached hereto as Exhibit 99.3.1 and incorporated by reference herein.

 

Item 7

Materials to Be Filed as Exhibits

The disclosure in Item 7 is hereby supplemented by adding the following in appropriate numerical order:

 

Exhibit 99.2.1    Amendment No. 2 to the Investor Rights Agreement (incorporated by reference to Exhibit 10.1 to the Issuer’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 29, 2019).
Exhibit 99.3.1    Letter to The Spruce House Partnership LP, dated November 27, 2019.
Exhibit 99.4.4    Joint Filing Agreement, dated as of November 29, 2019.


SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: November 29, 2019

 

Spruce House Investment Management LLC
By:  /s/ Thomas Walker                                             
Name:   Thomas Walker
Title:   Authorized Person
Spruce House Capital LLC
By:  /s/ Thomas Walker                                             
Name:   Thomas Walker
Title:   Authorized Person
The Spruce House Partnership LP
By:   Spruce House Capital LLC
  Its general partner
By:  /s/ Thomas Walker                                             
Name:   Thomas Walker
Title:   Authorized Person
Zachary Sternberg

/s/ Thomas Walker

(Attorney-in-fact)
Benjamin Stein

/s/ Thomas Walker

(Attorney-in-fact)

The original statement shall be signed by each person on whose behalf the statement is filed or his authorized representative. If the statement is signed on behalf of a person by his authorized representative (other than an executive officer or general partner of the filing person), evidence of the representative’s authority to sign on behalf of such person shall be filed with the statement: Provided, however, That a power of attorney for this purpose which is already on file with the Commission may be incorporated by reference. The name and any title of each person who signs the statement shall be typed or printed beneath his signature.

Attention - Intentional misstatements or omissions of fact constitute Federal criminal violations (See 18 U.S.C. 1001).

EX-99.3.1 2 d838973dex9931.htm EX-99.3.1 EX-99.3.1

Exhibit 99.3.1

[GTT Communications, Inc. Letterhead]

November 27, 2019

The Spruce House Partnership LP

c/o The Spruce House Partnership

435 Hudson Street — Suite 804

New York, NY 10014

Attention: Ben Stein and Zach Sternberg

Acquisition of GTT Communications, Inc. Securities

Messrs. Stein and Sternberg:

We refer to the Investor Rights Agreement, dated as of May 31, 2018, by and among GTT Communications, Inc., a Delaware corporation (the “Company”), and the Persons listed on Schedule I thereto, including The Spruce House Partnership LP (“Spruce House”), as amended by Amendment No. 1 to Investor Rights Agreement, dated as of May 30, 2019, by and among the Company, Spruce House and the Acacia Investors and by Amendment No. 2 to Investor Rights Agreement, dated as of November 27, 2019, by and among the Company and Spruce House (as so amended, the “Investor Rights Agreement”). Each capitalized term used and not defined herein shall have the meaning assigned to such term in the Investor Rights Agreement.

Pursuant to Section 3.1.1(b) of the Investor Rights Agreement, the Company hereby consents to the acquisition by Spruce House and its controlled Affiliates of common stock of the Company, at any time and from time to time, so long as the total beneficial ownership of Spruce House and its controlled Affiliates in the Company’s common stock, after giving effect to such acquisitions, would not exceed 30% of the Company’s Total Voting Power at such time; provided that, if at any time the Company reasonably believes an acquisition by Spruce House or its controlled Affiliates of additional shares of the Company’s common stock will be treated as an “ownership change” as defined in Section 382 of the Code, the Company may notify Spruce House of such belief, and Spruce House shall not acquire any additional shares of the Company’s common stock until such time that Spruce House is advised by the Chief Financial Officer of the Company that the facts and circumstances giving rise to the Company’s reasonable belief that such acquisition would be treated as an “ownership change” as defined in Section 382 of the Code no longer apply. Upon Spruce House’s request from time to time, the Chief Financial Officer of the Company shall confirm whether the Company continues to reasonably believe that an acquisition by Spruce House or its controlled Affiliates of additional shares of the Company’s common stock would be treated as an “ownership change” as defined in Section 382 of the Code.

From the date of this letter and continuing until receipt of approval (or confirmation that no approval is required) from the Republic of Austria Federal Ministry for Digital and Economic Affairs (Bundesministerium Digitalisierung und Wirtschaftsstandort) and from the state public utility commission for the Commonwealth of Virginia (together, the “Regulatory Approvals”) required in order for Spruce House to acquire common stock representing 25% or more of the Company’s Total Voting Power (the “End Date”), in any vote or action by written consent of the stockholders of the Company (including, without limitation, with respect to the election of directors), Spruce House shall, and shall cause its controlled Affiliates to, vote or execute a written consent with respect to the Voting-Restricted Shares held by Spruce House and its controlled Affiliates in accordance with the recommendation of the Company Board or, if the Company Board does not make a recommendation with respect to a particular matter, in proportion to the votes cast by the holders of the Company’s common stock other than Spruce House and its controlled Affiliates. For purposes of this agreement, (i) “Total Voting Power


shall mean the aggregate number of votes which may be cast by all holders of outstanding common stock and all other securities of the Company entitled to vote in the election of directors and (ii) “Voting-Restricted Shares” shall mean all shares of the Company’s common stock beneficially owned by Spruce House and its controlled Affiliates (and with respect to which such entities have voting rights) in excess of 24.9% of the Company’s Total Voting Power. In furtherance of this paragraph, Spruce House and its controlled Affiliates hereby irrevocably appoint the Company and any individuals designated by the Company, and each of them individually, as the attorneys, agents and proxies, with full power of substitution and re-substitution in each of them, for Spruce House and its controlled Affiliates, and in the name, place and stead of Spruce House and its controlled Affiliates, to vote (or cause to be voted) in such manner as set forth in this paragraph the Voting-Restricted Shares that Spruce House and its controlled Affiliates are or may be entitled to vote at any meeting of the Company held after the date hereof (but prior to the End Date), whether annual or special and whether or not an adjourned meeting, and to act by written consent in lieu of a meeting to the extent permissible with respect to the Voting-Restricted Securities (the “Irrevocable Proxy”). The Irrevocable Proxy is coupled with an interest, shall be irrevocable and binding on any successor in interest of Spruce House and/or its controlled Affiliates and shall not be terminated by operation of law upon the occurrence of any event; provided, however, that notwithstanding any other provision hereof (i) the Irrevocable Proxy shall cease to apply to any shares upon the sale or transfer thereof by Spruce House or its controlled Affiliates to anyone other than Spruce House or its controlled Affiliates or any “group” (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934) of which Spruce House or its controlled affiliates is a member and (ii) the Irrevocable Proxy shall terminate upon the earlier of the End Date or mutual agreement of the Company and Spruce House. The Irrevocable Proxy shall operate to revoke and render void any prior proxy as to any securities of the Company heretofore granted by Spruce House and its controlled Affiliates which is inconsistent herewith, including the proxy granted by Spruce House pursuant to the letter agreement dated December 21, 2018. Spruce House shall cause any of its controlled Affiliates that may from time to time beneficially own Voting-Restricted Shares, if and when requested by the Company from time to time, to promptly execute and deliver to the Company an irrevocable proxy, substantially in the form of the Irrevocable Proxy. This paragraph shall be effective only as to any shares of the Company’s common stock held by Spruce House and/or its controlled Affiliates that are, once purchased, Voting-Restricted Shares, and shall automatically cease to be effective and shall terminate upon any sale or transfer if, as result of such sale or transfer, Spruce House and its controlled Affiliates no longer hold any Voting-Restricted Shares (it being acknowledged that if Spruce House and its controlled Affiliates at any time cease to hold Voting-Restricted Shares but subsequently and prior to the End Date acquire shares of the Company that are Voting-Restricted Shares, this paragraph shall be effective as to such subsequently acquired shares). Nothing herein shall be construed to create any limitation on the sale, transfer or pledge of any shares of the Company’s common stock by Spruce House. For the avoidance of doubt, the Irrevocable Proxy, any other proxies that may have been entered into pursuant to this paragraph and the obligations of Spruce House pursuant to this paragraph shall terminate on the End Date.

The Company shall use its reasonable efforts to cooperate with Spruce House to give prior notice to, and obtain consents of, all governmental entities necessary to permit Spruce House and/or its controlled Affiliates to acquire beneficial ownership of the Company’s common stock not exceeding 30% of the Company’s Total Voting Power, including the Regulatory Approvals. In connection therewith, Spruce House and the Company shall (i) promptly make appropriate filings with respect to all governmental entities necessary to permit Spruce House and/or its controlled Affiliates to acquire beneficial ownership of the Company’s common stock not exceeding 30% of the Company’s Total Voting Power, including the Regulatory Approvals, (ii) supply as promptly as practicable to the appropriate governmental entities any additional information and documentary material that may be requested in connection therewith and (iii) cooperate and coordinate with each other with respect thereto. Notwithstanding the foregoing, in connection with obtaining such consents the Company shall not be required to agree to any limitation on the conduct of the business of the Company or any of its subsidiaries or to commence or participate in any action or proceeding against any governmental entity.

[Signature Pages Follow]


Best regards,

 

GTT COMMUNICATIONS, INC.

By:   /s/ Chris McKee
Name:  

Chris McKee

Title:  

EVP, Secretary and General Counsel

 

Acknowledged and Agreed:

 

The Spruce House Partnership LP

By:  

Spruce House Capital LLC,

its general partner

By:   /s/ Thomas Walker
Name:  

Thomas Walker

Title:  

Authorized Person

EX-99.4.4 3 d838973dex9944.htm EX-99.4.4 EX-99.4.4

Exhibit 99.4.4

Joint Filing Agreement

Statement Pursuant to Rule 13d-1(k)(1)

The undersigned hereby consent and agree to file a joint statement on Schedule 13D, as amended, under the Securities Exchange Act of 1934, as amended, with respect to the Common Stock, par value $.0001 per share, of GTT Communications, Inc. beneficially owned by them, together with any or all amendments thereto, when and if appropriate. The parties hereto further consent and agree to file this Statement pursuant to Rule 13d-1(k)(1)(iii) as an exhibit to Schedule 13D, thereby incorporating the same into such Schedule 13D.

Date: November 29, 2019

 

Spruce House Investment Management LLC
By:  /s/ Thomas Walker                                             
Name:   Thomas Walker
Title:   Authorized Person
Spruce House Capital LLC
By:  /s/ Thomas Walker                                             
Name:   Thomas Walker
Title:   Authorized Person
The Spruce House Partnership LP
By:   Spruce House Capital LLC
  Its general partner
By:  /s/ Thomas Walker                                             
Name:   Thomas Walker
Title:   Authorized Person
Zachary Sternberg

/s/ Thomas Walker

(Attorney-in-fact)
Benjamin Stein

/s/ Thomas Walker

(Attorney-in-fact)