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Mitel Networks updates pricing on first- and second-lien term loans
By Sara Rosenberg
New York, July 12 – Mitel Networks Corp. firmed pricing on its $1.12 billion seven-year first-lien term loan at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, and set the spread on its $260 million eight-year second-lien term loan at Libor plus 875 bps, the high end of the Libor plus 850 bps to 875 bps talk, according to a market source.
Also, the original issue discount on the first-lien term loan was tightened to 99.75 from 99.5, the source said.
The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, an original issue discount of 98 and hard call protection of 103 in year one, 102 in year two and 101 in year three.
Earlier in syndication, the first-lien term loan was upsized from $1.02 billion, the second-lien term loan was downsized from $360 million, the discount on the second-lien loan was changed from 99 and the hard call protection on the second-lien loan was revised from 102 in year one and 101 in year two.
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 are due at noon ET on Friday, accelerated from 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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