Avaya launches $500 million term loan at SOFR plus 900 bps

By Sara Rosenberg

New York, June 9 – Avaya launched on Thursday its $500 million first-lien term loan due December 2027 with price talk of SOFR plus 900 basis points with a 1% floor and an original issue discount of 96, according to a market source.

The term loan is non-callable for two years, then at 101 for a year, with a bankruptcy make-whole, and has no amortization, the source said.

Goldman Sachs Bank USA is the left bookrunner on the deal.

Commitments are due at noon ET on June 17, the source added.

Proceeds will be used to prefund the refinancing of the company’s existing $350 million convertible debt due June 2023, to provide additional liquidity for general corporate purposes and to pay transaction fees and expenses.

Avaya is a Santa Clara, Calif.-based provider of communication software and services for enterprises.

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