Avaya gets debt commitment from three banks to back LBO by Silver Lake and TPG

By Sara Rosenberg

New York, June 5 - Avaya Inc. has received a debt financing commitment to help fund its buyout by Silver Lake and TPG Capital, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Morgan Stanley, Citigroup and JPMorgan are the lead banks on the financing.

Under the terms of the agreement, Avaya shareholders will receive$17.50 in cash per share. The transaction is valued at $8.2 billion.

Closing is expected to occur in the fall, subject to receipt of shareholder approval and customary regulatory approvals, as well as satisfaction of other customary closing conditions. There is no financing condition.

The agreement provides that Avaya can solicit proposals from third parties during the next 50 days. Avaya does not intend to disclose developments with respect to the solicitation process unless and until its board of directors has made a decision.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.