Avaya details structure and pricing on $4.335 billion credit facility

By Sara Rosenberg

New York, Nov. 1 - Avaya Inc. detailed the structure and pricing on its $4.335 billion credit facility that was used to help fund its buyout by Silver Lake and TPG Capital, according to an 8-K filed with the Securities and Exchange Commission Thursday.

The credit facility has yet to be syndicated, but it is currently expected that the bank meeting for the deal will occur sometime this month, a market source said.

Citigroup, Morgan Stanley and JPMorgan are the joint lead arrangers and joint bookrunners on the deal, with Citi the left lead and administrative agent. Morgan Stanley is syndication agent and JPMorgan is documentation agent.

The facility consists of a $335 million six-year asset-based revolver priced at Libor plus 175 basis points, with a 25 bps commitment fee, a $3.8 billion seven-year term loan (B) priced at Libor plus 275 bps and a $200 million six-year multi-currency revolver priced at Libor plus 275 bps, with a 50 bps commitment fee.

There is a $100 million accordion feature under the asset-based revolver, and a $1 billion accordion feature under the term loan and revolver.

The company also got a $1.45 billion bridge, consisting of a $700 million senior unsecured cash-pay bridge loan with initial pricing of Libor plus 362.5 bps and a $750 million senior unsecured PIK-toggle bridge loan with initial pricing of Libor plus 387.5 bps.

Avaya was recently bought by Silver Lake and TPG for $17.50 in cash per share. The transaction is valued at $8.2 billion.

Avaya is a Basking Ridge, N.J., provider of communication systems, applications and services.

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