Avaya sets structure for $1.7 billion two-part senior note offering

By Paul A. Harris

St. Louis, Sept. 26 - Avaya Inc. disclosed the structure of its $1.7 billion two-part offering of senior unsecured notes in an 8-K filing posted on Tuesday with the Securities and Exchange Commission.

The company intends to place a $700 million tranche of cash-pay notes and a $1 billion tranche of PIK toggle notes.

The $5.5 billion of debt financing also includes a $3.8 billion credit facility.

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

Proceeds will be used by Avaya to help fund the leveraged buyout of the company by Silver Lake and TPG Capital for $17.50 in cash per share in a transaction is valued at $8.2 billion.

Other financing will come from up to $2.14 billion of sponsor equity.

Closing is expected to occur in the fall.

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

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