News : Mitel Announces Closing of New Credit Facility
Ottawa, Ontario, Canada, March, 2017 -- Mitel(R) (Nasdaq:MITL) (TSX:MNW), a global provider in business communications, announced that it has closed a new credit facility that includes significantly improved terms as well as greatly enhanced capacity and flexibility to capitalize on the rapidly changing unified communications and collaboration (UCC) market.
The new credit facility will consist of a term loan and a revolving credit facility, both of which will mature in 2022. The initial funding from the new credit facilities will be used to repay remaining debt outstanding under Mitel's previous credit facilities in addition to accrued interest, fees and expenses.
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The lending syndicate for the new facility is comprised of nine financial institutions led by Citizens Bank, N.A., which also acted as administrative agent. BMO Capital Markets, Canadian Imperial Bank of Commerce and HSBC Bank Canada served as Joint Lead Arrangers and Joint Bookrunners. EA Markets LLC provided Mitel with independent advisory and transaction services in conjunction with the arrangement and structuring of the facility.
"This new credit facility, combined with the recent divestiture of our mobile business, significantly strengthens Mitel's capital structure," said Steve Spooner, Chief Financial Officer. "Since the beginning of the year, we have substantially reduced our net leverage and significantly increased our liquidity, giving us the financial capacity and flexibility to pursue growth opportunities, invest in the business, and implement other shareholder-enhancing initiatives."
Posted by Veronica Silva Cusi, news correspondent
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Mitel is a global provider of enterprise and small business communications solutions and services. The company focuses on blending powerful infrastructure with an intuitive human interface to deliver the benefits of voice, video and data convergence to the user. Mitel's broad portfolio of solutions provide advanced voice, video and data communications platforms, desktop phones and Internet appliances, intuitive applications for customer relationship management and mobility, messaging and multimedia collaboration.
Published: Tuesday, March 14, 2017