Mitel Networks launches $300 million term B at Libor plus 400-425 bps

By Sara Rosenberg

New York, Sept. 7 – Mitel Networks Corp. launched on Thursday its $300 million six-year covenant-light term loan B (B1/B+) with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

BMO Capital Markets Corp., Citizens Bank, HSBC Bank and CIBC are the bookrunners on the deal.

Commitments are due on Sept. 19, the source added.

Proceeds will be used with cash on hand and revolving credit facility borrowings to fund the acquisition of ShoreTel for $7.50 per share, or a total equity value of about $530 million and a total enterprise value of around $430 million.

Closing is expected in the third quarter, subject to customary conditions.

Mitel is an Ottawa-based provider of communications software solutions. ShoreTel is a Sunnyvale, Calif.-based provider of communication solutions.

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