Avaya launches credit facility amendment and extension to investors

By Sara Rosenberg

New York, Jan. 25 - Avaya Inc. held a lender call at 2 p.m. ET on Tuesday to launch an amendment and extension proposal under which it is looking to extend 50% of its term loan B-1 to 2017 from 2014, according to sources.

As of Sept. 30, there was $3.662 billion outstanding under the term loan B-1.

Pricing on the extended term loan B-1 would be Libor plus 425 basis points, compared to pricing of Libor plus 275 bps on non-extended borrowings.

In addition, the amendment would carve out a basket to allow for additional senior secured debt in the form of loans or bonds and the company would have the option to use that debt to repay whichever term loan tranche it wants first. The expectation is that the term loan B-2 would be paid down first, then the B-1 and then the B-3, the source said.

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

Lenders are being offered a 10 bps amendment fee.

Responses are due on Feb. 1.

Avaya is a Basking Ridge, N.J.-based enterprise communications systems, software and services company.

© 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.