Mitel, a global leader in real-time business, cloud and mobile communications, announced that its syndicate of lenders has agreed to amend certain covenants contained in its senior secured credit facility. The amendment provides greater flexibility with respect to Mitel's permitted leverage ratio, the primary financial covenant contained in the credit agreement.

"As part of prudent treasury management, Mitel monitors our covenant position on an ongoing basis to ensure we maintain appropriate operating flexibility and the amendment announced today provides that," said Steve Spooner, Chief Financial Officer, Mitel. "The willingness of our lender group to agree to this amendment demonstrates the confidence they have in the company."

Among other things, the amendment to the credit agreement  increases the leverage ratio covenant (as defined) to a maximum of 5.25 times consolidated EBITDA (as defined) through the quarter ending December 2015; declining to 4.75 times for the quarter ending in March 2016; and thereafter returning to existing covenant levels consistent with the terms of the credit agreement; increases the applicable margin on the initial term loans from 4.00% to 4.50% for Eurodollar loans and from 3.00% to 3.50% for Base Rate Loans; and 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 company's total $710 million credit facilities consist of an undrawn US$50 million revolving credit facility and a fully drawn US$660 million term loan facility. The revolving credit facility matures on April 29, 2020 and the term loan facility matures on April 29, 2022.

A global market leader in enterprise and mobile communications powering more than 2 billion business connections and 2 billion mobile subscribers every day, Mitel (Nasdaq:MITL) (TSX:MNW) helps businesses and mobile carriers connect, collaborate and provide innovative services to their customers.