Avaya launches extension of $1.43 billion term loan to October 2017

By Sara Rosenberg

New York, Oct. 19 - Avaya Inc. held a call on Friday morning to launch an amendment and extension, under which it is looking to push out the maturity on its roughly $1.43 billion term loan B-1 by three years, according to sources.

The company hopes to extend the maturity to Oct. 26, 2017.

Price talk on the extended debt is Libor plus 525 basis points with a 1.25% Libor; and there is 101 soft call protection for one year, sources said.

By comparison, current pricing on the term loan B-1 is Libor plus 275 bps with no floor.

The maturity on the extended term loan B-1 borrowings is the same as the maturity on the company's existing term loan B-3, which is priced at Libor plus 450 bps with no Libor floor.

With the extension, the company is looking to amend its credit agreement to allow up to $750 million of additional junior-lien debt under the existing ratio basket, sources said.

Lenders are being offered a 37.5 bps extension fee and a 12.5 bps consent fee.

Commitments and consents are due on Oct. 26.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC are the lead banks on the deal.

Avaya is a Basking Ridge, N.J.-based provider of business collaboration and communications services.

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