Avaya new extended term loan B-5 sized at roughly $563 million

By Sara Rosenberg

New York, Dec. 18 - Avaya Inc. firmed the size of its new term loan B-5 due March 2018 at around $563 million, according to a market source.

Pricing on the B-5 loan is Libor plus 675 basis points with a 1.25% Libor floor.

The B-5 is made up from commitments that were extended under the term loan B-1 and from the term loan B-4.

With this transaction, the size of the term loan B-1 due 2014 was reduced to around $586 million from about $1.3 billion and the size of the term loan B-4 due Oct. 26, 2017 was reduced to around $1.3 million from roughly $135 million, the source said.

Pricing on the B-1 loan is Libor plus 275 bps with no floor and pricing on the B-4 loan is Libor plus 600 bps with a 1.25% Libor floor.

Lenders who extended their commitments were offered a paydown, which some accepted and some turned down. All in all, the repayment will total around $290 million, the source added. The sizes of the B-5, B-1 and B-4 term loans reflect this paydown.

Funds for the repayment are coming from a $290 million senior secured notes offering.

As part of the extension, the company is amending its credit facility to allow for the paydown.

Lenders were offered a 15 bps consent fee.

Citigroup Global Markets Inc. is leading the transaction.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.