Moody's: Avaya notes, loan B1

Moody's Investors Service said it assigned B1 ratings to Avaya Inc.'s proposed $1 billion senior secured note offering due 2019 and recently amended and extended senior secured term loan.

The agency also said it affirmed its existing B3 corporate family rating.

The new notes will refinance the existing $990 million of senior secured debt used to finance the acquisition of Nortel's enterprise assets, Moody's said.

The amended and extended term loan pushes the maturity of about half the existing $3.7 billion term loan to 2017 from 2014, the agency said.

The outlook is stable.

The ratings continue to reflect the high leverage levels and debt service requirements at Avaya at a time when they are integrating the significant Nortel acquisition, Moody's said.

The rating also acknowledges the company's industry leading position within the enterprise telephony market and favorable replacement trends facing the industry, the agency said.

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