Mitel talks institutional tranches of $460 million credit facility with 96.00 OID

By Paul A. Harris

St. Louis, Sept. 27 - Mitel Networks Corp. set the price talk for the institutional tranches of its $460 million credit facility on Thursday, according to market sources.

The company's $300 million first-lien term loan (Ba3/BB-) is talked at Libor plus 325 basis points, while its $130 million second-lien covenant-light term loan (B3/CCC+) is talked at Libor plus 700 bps.

Both tranches are talked at an original issue discount of 96.00. They had been marketed at 99.00 in July.

During syndication the first-lien term loan was upsized from $245 million and the second-lien term loan was downsized from $185 million.

The facility also includes a $30 million revolver.

Morgan Stanley and Merrill Lynch are leading the deal.

Proceeds will be used to fund the acquisition of Inter-Tel Corp., a full-service provider of business communications solutions, for $25.60 per share in cash, representing a total purchase price of about $723 million.

Mitel is an Ottawa provider of unified communications solutions and services for business customers.

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