S&P lifts Mitel view to stable

Standard & Poor's said it revised the outlook on Mitel Networks Corp. to stable from negative.

S&P also said it affirmed Mitel's B long-term corporate credit rating, along with the B+ rating with a 2 recovery rating on its $200 million term loan B due 2019 and $40 million revolving credit facility due 2018.

The agency also affirmed the CCC+ rating with a 6 recovery rating on Mitel's $80 million second-lien term loan due 2020.

The 2 recovery ratings indicate 70% to 90% expected default recovery and the 6 recovery rating indicates 0% to 10% expected default recovery.

The outlook revision was based on Mitel's refinancing of its credit facilities, S&P said.

In conjunction with the refinancing, the company repaid about $35 million from excess cash-on-hand, the agency said.

The transaction alleviates the near-term risk of a covenant breach, improves Mitel's debt-maturity profile and liquidity position, modestly reduces the company's debt and enhances its financial flexibility, S&P said.

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