New Issue: Avaya prices $1.01 billion eight-year secured notes at par to yield 7%

By Paul A. Harris

Portland, Ore., Feb. 8 - Avaya Inc. priced a $1.009 billion issue of senior secured notes due April 1, 2019 (B1/B) at par to yield 7% on Tuesday, according to an informed source.

The yield printed at the tight end of the 7% to 7¼% price talk.

Morgan Stanley & Co. Inc., UBS Investment Bank, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.

Proceeds will be used to repay bank debt.

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

Issuer:	Avaya Inc.
Amount:	$1.009 billion
Maturity:	April 1, 2019
Security description:	Senior secured notes
Bookrunners:	Morgan Stanley & Co. Inc., UBS Investment Bank, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
Co-managers:	Deutsche Bank Securities Inc., Barclays Capital Inc., HSBC Securities
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	375 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2015, then callable at 103.5, 101.75, par on and after April 1, 2017
Equity clawback:	35% at 107 until April 1, 2014
Trade date:	Feb. 8
Settlement date:	Feb. 11
Ratings:	Moody's: B1
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	7% to 7¼%
Marketing:	Roadshow

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