Mitel Networks plans $405 million credit facility with Aastra purchase

By Sara Rosenberg

New York, Nov. 12 - Mitel Networks Corp. has received a commitment for an up to $405 million credit facility to help fund its acquisition of Aastra Technologies Ltd. and refinance an existing credit facility, according to a news release.

Jefferies Finance LLC and TD Securities are the lead banks on the deal.

The facility will include a revolver and term loan debt.

Under the agreement, Aastra is being purchased for $6.52 in cash plus 3.6 Mitel common shares per each Aastra common share.

Aastra shareholders will own around 43% of the combined company.

The combined company is expected to have $1.1 billion in diversified annual sales about $45 million of run rate synergies within two years and strong free cash flow generation, the release said.

Closing is targeted for the first quarter of 2014, subject to Aastra shareholder approval, court approval, compliance with the Investment Canada Act and other customary conditions.

Mitel is a Kanata, Ont.-based provider of cloud and premises-based unified communications software solutions. Aastra is a Concord, Ont.-based enterprise communications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.