By Paul A. Harris
Portland, Ore., Sept. 11 – Avaya Holdings Corp. priced an upsized $1 billion issue of eight-year senior secured notes (B2/B/BB-) via Avaya Inc. at par to yield 6 1/8% on Friday, according to market sources.
The issue size increased from $750 million.
The yield printed at the tight end of yield talk in the 6¼% area. Initial guidance was in the mid-6% area.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC.
The Santa Clara, Calif.-based business communications services provider plans to use the proceeds to repay bank debt.
| Issuer: | Avaya Inc.
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | Sept. 15, 2028
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| Securities: | Senior secured notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 6 1/8%
|
| Price: | Par
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| Yield: | 6 1/8%
|
| Spread: | 561 bps
|
| Call protection: | Three years
|
| Trade date: | Sept. 11
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| Settlement date: | Sept. 25
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¼% area
|
| Marketing: | Roadshow
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