MITEL NETWORKS CORPORATION (NASDAQ:MITL) Files An 8-K Other EventsItem 8.01 Other Events.
Mitel US Holdings, Inc. (“Mitel US”), a wholly-owned subsidiary of Mitel Networks Corporation (the “Company”), received on May8, 2018 a $25 million cash payment from Mavenir Private Finance Ltd. (the “Issuer”) in full satisfaction of all amounts owing to Mitel US under a $35 million non-interest bearing, long-term promissory note (due the earlier of (i)a refinancing or replacement in full of the credit facility of an affiliate of the Issuer and (ii)2027) payable to Mitel US and issued by the Issuer in connection with the sale by the Company of its mobile business unit completed in February 2017.
The Company intends to use the $25 million cash proceeds to make a prepayment of the Company’s term loans under its existing senior secured credit facilities.
At March31, 2018, the Company held the non-interest bearing promissory note at a book value of $10 million for accounting purposes, and as a result of the repayment of the note the Company expects to realize a gain of $15 million during the quarter ending June30, 2018.
About MITEL NETWORKS CORPORATION (NASDAQ:MITL)
Mitel Networks Corp is a Canada-based provider of business communications and collaboration software, services and solutions. The Company operates through three segments: Enterprise, Cloud and Mobile. The Enterprise segment sells and supports products and services for premise-based customers. The Cloud segment sells and supports products that are deployed in a cloud environment. The Mobile segment sells and supports software-based telecommunications networking solutions that enable mobile service providers to deliver IP-based voice, video, rich communications and enhanced messaging services to their subscribers. The Company’s product portfolio includes premises and cloud-based enterprise communications infrastructure products and solutions, unified communications and collaboration (UCC) and contact center applications and a range of service offerings.
