Mitel Networks amends facility to increase interest, leverage ratios

By Tali Rackner

Norfolk, Va., Sept. 29 – Mitel Networks Corp. amended terms under its $710 million senior secured credit facility to increase pricing and provide greater flexibility, according to a press release.

The amendment increases the applicable margin on initial term loans to Libor plus 450 basis points from 400 bps.

It also increases the leverage ratio covenant to a maximum of 5.25 times consolidated EBITDA through the quarter ending December 2015; 4.75 times for the quarter ending March 2016; and thereafter returning to existing covenant levels consistent with the terms of the credit agreement.

Finally, the amendment resets the 101 soft call provision to run for one year through September 2016.

The total borrowing amounts under the credit facility and maturity dates have not changed. The facilities consist of an undrawn $50 million revolving credit facility and a fully drawn $660 million term loan facility.

The revolving credit facility matures on April 29, 2020, and the term loan facility matures on April 29, 2022.

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

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