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Avaya trims loan to $350 million, ups spread to SOFR plus 1,000 bps
By Sara Rosenberg
New York, June 23 – Avaya Inc. downsized its first-lien term loan due December 2027 to $350 million from $500 million and increased pricing to SOFR plus 1,000 basis points from SOFR plus 900 bps, according to a market source.
Also, the issue price was changed to par from 96 and a 10 points upfront fee was added, the source said.
In addition, call protection on the term loan was revised to non-callable for three years, then at 104 in year four, with a bankruptcy make-whole, from non-callable for two years, then at 101 in year three, with a bankruptcy make-whole.
Furthermore, changes were made to documentation.
The term loan still has a 1% floor and no amortization.
As a result of the term loan downsizing, the company is now getting a $150 million privately placed senior secured convertible note.
Goldman Sachs Bank USA is the left bookrunner on the deal.
Recommitments are due at noon ET on Friday, 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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