Credit Suisse, Cayman Islands Branch, served as administrative agent on a $1.22 billion credit facility for Mitel Networks. The facility consisted of a seven-year $1.12 billion first lien term loan and a five-year $100 million revolving credit facility.
According to a related 8-K filing, proceeds from the term loan and borrowings under the revolver were used to fund transactions in conjunction with Mitel’s acquisition by MLN Acquisition, a British Columbia-based unlimited liability company. Mitel also plans to use the revolver for working capital and general corporate purposes.
Credit Suisse also served as administrative agent on an additional seven-year $260 million second lien term loan facility to further support Mitel’s acquisition, repay the company’s existing credit facility and pay additional expenses and fees.
Borrowings under the first lien senior facilities will bear interest at a rate equal to either an adjusted LIBO rate determined by reference to the costs of funds for Eurodollar or Canadian deposits for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 0.00% floor, or a base rate, in each case plus an applicable margin. The first lien facilities will also require scheduled quarterly amortization payments on the term loan in an annual amount equal to 1.0% of the original principal amount of the term loan, with the balance to be paid at maturity.
Borrowings under the second lien term facility will bear interest at a rate equal to either an adjusted LIBO rate determined by reference to the costs of funds for Eurodollar or Canadian deposits for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 0.00% floor, or a base rate, in each case plus an applicable margin. The second lien facility also requires the original principal amount of the term loan to be paid at maturity and is not subject to scheduled amortization payments. Mitel may voluntarily repay outstanding loans under the second lien facility at any time, without prepayment premium or penalty.
Mitel is a business communications firm which powers more than two billion business connections with cloud, enterprise and next-gen collaboration applications. It has more than 70 million users in nearly 100 countries.
