"With Mavenir part of Mitel's business and market footprint, we are now able to fully address both the enterprise and mobile markets for IP-based communications," said Rich McBee, President and Chief Executive Officer of Mitel. "The combination gives Mitel a unique opportunity to capitalize on the rapid growth of 4G LTE now, and the convergence of business and mobile IP communications in the future."
Mavenir CEO, Pardeep Kohli, joins Mitel as President of Mitel's Mobile Division.
"The move to LTE mobile networks has created a valuable opportunity for service providers to leverage a converged all-IP network to offer feature-rich business and consumer communication services on any device, anywhere, on any access network," said Pardeep Kohli. "Now, as part of Mitel, our mobile customers will be able to benefit from Mavenir's industry-leading 4G solutions as well as the global reach, size and scale of Mitel's operations, and its IP and cloud communications expertise."
In conjunction with the closing of the acquisition, Mitel today completed financing of a US$710 million credit facility consisting of a US$660 million term loan maturing in April 2022 and an undrawn US$50 million revolving credit facility maturing in April 2020. The US$660 million term loan is priced at LIBOR, plus 4% with a LIBOR floor of 1.00%. The undrawn US$50 million revolving credit facility is priced at LIBOR, plus 4%. Upon achieving net debt leverage of 2.75X, the rate on the term loan will decline a further 25 bps.
"Mitel's track record of successful M&A integration and our reputation for prudent operational management have enabled the company to attract quality investors at very favorable terms," commented Steve Spooner, Chief Financial Officer, Mitel. "Having a debt offering nearly 3X oversubscribed is a real testament to the Mitel team. The resulting capital structure brings excellent operating flexibility to the company ensuring Mitel can invest in those parts of our business driving profitable growth, while also providing us the strength and stability that our customers expect when working with a global leader."