Mitel Networks flexes $355 million term loan to Libor plus 425 bps

By Sara Rosenberg

New York, Jan. 15 - Mitel Networks Corp. reduced pricing on its $355 million six-year term loan to Libor plus 425 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

Also, the original issue discount on the term loan firmed at 991/2, the tight end of the 99 to 99½ talk, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company's $405 million senior secured credit facility (Ba3/B+) also includes a $50 million five-year revolver.

Recommitments are due at noon ET on Thursday, the source added.

Allocations are expected to go out next week.

Jefferies Finance LLC and TD Securities (USA) LLC are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Aastra Technologies Ltd. for $6.52 in cash plus 3.6 Mitel common shares per each Aastra common share and to refinance an existing credit facility.

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.

Closing is targeted for this quarter, 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.

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