Mitel plans $1.48 billion credit facilities for buyout by Searchlight

By Sara Rosenberg

New York, May 14 – Mitel Networks Corp. has received a commitment for $1.48 billion of senior secured credit facilities to help fund its purchase by Searchlight Capital Partners LP, according to a PREM14A filed with the Securities and Exchange Commission on Monday.

The facilities consist of a $100 million revolver, a $1.02 billion first-lien term loan and a $360 million second-lien term loan.

Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and TD Securities (USA) LLC provided the debt commitment.

Under the agreement, Mitel is being bought for $11.15 per common share in cash. The all-cash transaction is valued at about $2 billion, including net debt.

Other funds for the transaction will come from up to $700 million of equity.

Closing is expected during the second half of this year, subject to customary conditions, including receipt of shareholder, regulatory and court approvals.

Mitel is an Ottawa-based provider of communications software solutions.

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