Mitel readies launch of $1.48 billion credit facilities for Tuesday

By Sara Rosenberg

New York, June 25 – Mitel Networks Corp. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch its $1.48 billion of senior secured credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and TD Securities (USA) LLC are the leads on the deal.

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

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source said.

Proceeds will be used to help fund the buyout of the company by Searchlight Capital Partners LP 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.

Commitments are due at 5 p.m. ET on July 13, the source added.

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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