Avaya buys back $131.6 million 11 1/8% notes

Pittsburgh, July 6 - Avaya Inc. bought back $131.6 million of its 11 1/8% senior secured notes, according to a company news release.

The buyback, along with the previously announced redemption of $224 million in senior secured notes in February, have lowered the outstanding balance of the issue to $284 million from $640 million.

The company will save about $17.7 million in interest for fiscal year 2004 and $39.6 million thereafter, according to the release.

Avaya expects to record a one-time pretax loss of $21 million for the third quarter.

"These repurchases are consistent with Avaya's objective of reducing our long-term debt and deleveraging our balance sheet," chief financial officer Garry McGuire said in the release.

Avaya is a Basking Ridge, N.J.-based provider of business communications software.

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