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Mitel Networks shifts funds between first- and second-lien term loans
By Sara Rosenberg
New York, July 11 – Mitel Networks Corp. upsized its seven-year first-lien term loan to $1.12 billion from $1.02 billion and downsized its eight-year second-lien term loan to $260 million from $360 million, according to a market source.
Also, the original issue discount on the second-lien term loan was revised to 98 from 99 and the hard call protection was changed to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.
Spread talk on the second-lien term loan is still Libor plus 850 basis points to 875 bps with a 0% Libor floor, and price talk on the first-lien term loan is still Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99.5.
As before, the first-lien term loan has 101 soft call protection for six months.
The company’s $1.48 billion of senior secured credit facilities also include a $100 million revolver.
Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and TD Securities (USA) LLC are the leads on the deal.
Commitments continue to be due at 5 p.m. ET on Friday, the source added.
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.
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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