Avaya launches $589 million add-on term loan B-5 to investors

By Sara Rosenberg

New York, March 8 - Avaya Inc. launched on Friday morning a $589 million add-on term loan B-5 due March 31, 2018 with talk of Libor plus 675 basis points with a 1.25% Libor floor and an offer price of par to par 1/2, according to market sources.

Then, by around midday, the offer price on the loan firmed at par 1/2, sources said.

The spread and floor match the existing term loan B-5, as does the soft call protection of 102 through December 2013 and 101 through December 2014, the source said.

Commitments were due at 12:30 p.m. ET on Friday, moved up from an original deadline of 2 p.m. ET.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Barclays are the lead banks on the deal.

Proceeds will be used to repay borrowings under the company's term loan B-1 due 2014 that is priced at is Libor plus 275 bps with no floor.

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

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