Avaya launches credit facility extension and amendment to investors

By Sara Rosenberg

New York, Dec. 13 - Avaya Inc. held a call on Thursday afternoon to launch an amendment and extension, under which it is looking to push out the maturity on at least $1 billion of its roughly $1.3 billion term loan B-1 to March 2018 from 2014, according to a market source.

Pricing on the extended debt, which would be used to create a new term loan B-5, is Libor plus 675 basis points with a 1.25% Libor floor, the source said.

Pricing on the non-extended term loan B-1 is Libor plus 275 bps with no floor.

Additionally, under the proposal, 50% of the extended amount would be repaid with proceeds from a new senior secured bond offering, the source continued.

The amendment to the credit facility is to allow for this repayment, the source explained.

Lenders are being offered a 15 bps consent fee.

Commitments/consents are due at 5 p.m. ET on Monday.

Citigroup Global Markets Inc. is leading the transaction.

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

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