Mitel Networks Files for $230 Million IPO

NEW YORK (Reuters) – Telecommunications company Mitel Networks Corporation filed for an initial public offering of up to $230 million on Tuesday.

Mitel Networks, which provides telecom services to small to medium businesses, said it plans to use proceeds from the offering to repay its revolving credit and loans, and for working capital and general corporate purposes, including acquisitions.

The Ottawa, Canada-based company reported revenue of $735.1 million in the 2009 fiscal year ended April 30, up 6.2 percent from the same period a year ago. It reported a net loss of $193.5 million, compared with a net income of $12.6 million in the same period a year ago.

Mitel Networks recorded a goodwill impairment charge of $284.5 million in fiscal 2009 on goodwill initially recorded as part of its acquisition of business communications company Inter-Tel, it said in a filing with the U.S. Securities and Exchange Commission.

The company said it tests its goodwill annually for impairment and that the impairment was partially offset by a gain from embedded derivatives and a deferred tax benefit.

Mitel Networks acquired business communications company Inter-Tel in August 2007 and the company’s 2008 financial results include eight and a half months of results from Inter-Tel.

The company has recorded net losses every year since it incorporated in 2001, except for 2008, it said in a regulatory filing.

Major shareholders include funds associated with Wesley Clover Corp and Arsenal Holdco (an affiliate of Francisco Partners).

The filing did not specify details of the offering, but said the underwriters are led by Bank of America Merrill Lynch, J.P. Morgan, and UBS Investment Bank. (Reporting by Clare Baldwin)