Mitel Emerges from Financial Restructuring, Significantly Reducing Debt and Poised to Drive Hybrid UC Leadership
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Completes financial restructuring with improved capital structure, eliminating $1.15B of debt and reducing associated cash interest payments by approximately $135M annually
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Focused on delivering AI-powered UC & CX solutions to enterprises globally
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Continues to provide customers with secure, reliable, and flexible hybrid communications
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OTTAWA, Ontario — Mitel Networks Corporation, (together with certain affiliates, 'Mitel' or 'the Company'), a global leader in business communications, today announced that it has successfully completed its financial restructuring to position the business for sustainable, long-term success.
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As a result, Mitel has a significantly stronger balance sheet and capital structure, well-positioned to optimize its global operations and drive profitable and efficient growth. Through this process, the Company has reduced its debt by approximately $1.15B, reduced annual cash interest payments by approximately $135M, and raised approximately $125M of new funding in aggregate to support its go-forward operations. These improvements enhance Mitel's financial flexibility and better enable the Company to execute its strategic priorities while continuing to meet customers' needs.
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This concludes the final phase of Mitel's proactive efforts to right-size its capital structure and accelerate its strategy as a market leader. With a fortified balance sheet and 92% of organizations prioritizing hybrid*, Mitel's strategy is focused on delivering hybrid innovation and AI capabilities that meet the rising enterprise demand. Serving more than 70 million users in over 100 countries, Mitel will continue to drive innovation that delivers everyday value to customers as they maximize the value of existing investments, adopt emerging technologies like AI, and address specialized requirements in the most demanding industries and geographies through a hybrid communications strategy.
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'Today marks a fresh start for Mitel,' said Tarun Loomba, President and Chief Executive Officer of Mitel. 'With the weight of legacy debt lifted, we are focused on accelerating our hybrid communications leadership. We have a portfolio designed to provide enterprise customers with secure, reliable, and modern communications solutions, and a strong financial position that will take us well into the future. We are excited to continue expanding workforce communications experiences and enhancements to vertical solutions for frontline workers, Mitel CX, and our jointly developed hybrid solution with Zoom throughout the year. We appreciate the continued trust of our employees, customers, partners, and vendors throughout this process and look forward to continuing to lead the way in unified hybrid communications for years to come.'
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'As we completed this process swiftly and decisively, the business maintained momentum that is reflected in a strong year-over-year Q1 performance,' said Janine Yetter, Mitel Chief Financial Officer. 'Our Q1 results remained consistent with notable year-over-year growth in Germany and solid gains in UC and contact center revenue. Our healthier balance sheet is now appropriately aligned to an organization of our size, and our Q1 performance positions us well to accelerate the execution of our strategic plan with a continued focus on delivering flexible, secure, and mission-critical hybrid communications solutions.'
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Mitel User Group Board President Cas Rangel shared, 'Today marks a new chapter for Mitel, and with it, a renewed sense of optimism for the future of telecommunications. Emerging from restructuring is never a simple journey—but it's a clear signal of strength, focus, and forward momentum. I believe customers can expect a stronger, more agile, and more responsive partner that's better positioned to innovate, support, and deliver lasting value.'
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Additional resources about Mitel's financial restructuring can be accessed by visiting the Company's restructuring website at https://www.mitel.com/about/financial-restructuring.
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About Mitel
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Mitel is a global leader in business communications, providing businesses with advanced communication, collaboration, and contact center solutions. With more than 70 million users across over 100 countries, Mitel empowers organizations to connect, communicate, and collaborate seamlessly, with the flexibility and choice they need to thrive, both now and for the future. Through proven experience and innovative solutions, Mitel delivers communications without compromise. For more information, go to www.mitel.com and follow us on LinkedIn and X @Mitel.
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