Avaya amends loan to increase amount available for common stock repurchases

By Sara Rosenberg

New York, May 26 - Avaya Inc. amended its credit facility to permit the use of up to $250 million for the fiscal year ended Sept. 30 to make dividend payments or distributions or to repurchase, redeem or otherwise acquire shares of its common stock, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Previously, the credit agreement only allowed the company to use up to 50% of consolidated net income for the fiscal year immediately preceding the fiscal year in which a dividend was paid.

Avaya currently has a share repurchase plan that authorizes it to repurchase up to $500 million of its outstanding common stock through April 2007. As of Wednesday, the day on which the amendment was completed, the company had purchased a total of 5.575 million shares of its common stock at an average share price of $8.38.

Citigroup is the agent on the deal.

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

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