Bank of America Merrill Lynch and Credit Suisse are holding a lender meeting tomorrow at 10:00 a.m. EDT to launch their $650 million term loan B for Mitel Networks backing its planned $560 million acquisition of Mavenir Systems.
The seven-year term loan will be governed by a net total leverage test, and includes six months of 101 soft call protection.
A $50 million, five-year revolver rounds out the financing.
Bank of America will act as administrative agent.
Proceeds will also be used to refinance Mitel’s existing debt. As of Dec. 31, Mitel had roughly $304 million outstanding under its B term loan due January 2020 (L+425, 1% LIBOR floor). That term loan was used to back Mitel’s merger with Aastra Technologies last year.
Mitel provides business-communications software and services, while Mavenir provides software-based mobile-networking services. The transaction is expected to be completed in the second quarter of 2015.
S&P Ratings revised its outlook on Mitel to stable, from positive, and affirmed the company’s B+ corporate ratings. Moody’s affirmed the Ottawa, Canada-based company at B2 and assigned a Ba3 rating to the new loans. – Chris Donnelly/Richard Kellerhals