Avaya successfully extends $1.825 billion of term loan B-1 borrowings

By Sara Rosenberg

New York, Feb. 2 - Avaya Inc. extended $1.825 billion of its term loan B-1 to 2017 at pricing of Libor plus 450 basis points, meaning the company met its goal of extending 50% of the total tranche, according to a market source.

By comparison, the $1.825 billion of non-extended term loan B-1 debt due in 2014 is priced at Libor plus 275 bps.

The extended loan has 101 soft call protection for one year.

In addition, Avaya's amendment carved 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.

Citigroup, JPMorgan and Morgan Stanley acted as the lead banks on the amendment and extension.

Lenders were offered a 25 bps amendment fee.

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

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