Avaya ups spread on $1.14 billion term loan B-6 to Libor plus 550 bps

By Sara Rosenberg

New York, Jan. 31 - Avaya Inc. increased pricing on its $1,137,539,846 term loan B-6 due March 31, 2018 to Libor plus 550 basis points from talk of Libor plus 500 bps to 525 bps, according to a market source.

Also, the offer price on new money commitments was set at 991/2, the wide end of the 99½ to par talk, the source said. The debt is still offered at par for existing lenders.

The B-6 loan still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the joint lead arrangers and bookrunners on the deal, with Citigroup the administrative agent.

Proceeds will be used to reprice/refinance an existing term loan B-5 that is priced at Libor plus 675 bps with a 1.25% Libor floor.

Existing B-5 lenders will get paid out at 101.

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

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