Avaya LBO financing to include up to $4.8 billion credit facility, $1.7 billion bonds

By Sara Rosenberg

New York, July 19 - Avaya Inc. detailed its leveraged buyout financing package, including plans for an up to $4.8 billion senior secured credit facility and the issuance of $1.7 billion of senior notes, according to a PREM14A filed with the Securities and Exchange Commission Thursday.

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

The credit facility consists of a $500 million asset-based revolver, a $3.8 billion term loan and a multicurrency revolver with a total size of the lesser of $500 million and the amount equal to $500 million minus 90% of the borrowing base under the asset-based revolver on the closing date.

As a backup for the bonds, the company has received a commitment for a $1.7 billion senior unsecured bridge loan.

Other LBO financing will come from up to $2.193 billion in equity.

Avaya is being bought by Silver Lake and TPG Capital for $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.

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

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