New Issue: Avaya prices $290 million notes due April 2019 at par to yield 9%

By Paul A. Harris

Portland, Ore., Dec. 18 - Avaya Inc. priced a $290 million issue of senior secured notes due April 1, 2019 (B1/B/) at par to yield 9% on Tuesday, according to a syndicate source.

The yield printed at the tight end of the 9% to 9¼% yield talk.

Citigroup Global Markets Inc. was the left bookrunner for the quick-to-market transaction.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

Proceeds will be used to repay the company's term loans.

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

Issuer:	Avaya Inc.
Amount:	$290 million
Maturity:	April 1, 2019
Securities:	Senior secured notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
Co-managers:	Bank of America Merrill Lynch, Barclays, Goldman Sachs & Co., UBS Securities LLC
Coupon:	9%
Price:	Par
Yield:	9%
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2015, then callable at 104.5, 102.25, par on and after April 1, 2017
Equity clawback:	35% at 109 until to April 1, 2015
Change-of-control put:	101%
Trade date:	Dec. 18
Settlement date:	Dec. 21
Ratings:	Moody's: B1
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	9% to 9¼%
Marketing:	Quick to market

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