Avaya launches $1.5 billion term loan B-7 at Libor plus 500-525 bps

By Sara Rosenberg

New York, April 16 – Avaya Inc. held a lender call at 2:30 p.m. ET on Thursday to launch a $1.5 billion five-year senior secured term loan B-7 that is talked at Libor plus 500 basis points to 525 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The B-7 loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Citigroup Global Markets Inc. is the lead bank on the deal.

Expected term loan B-7 ratings are B1/B.

Proceeds will be used to refinance existing senior secured term loans, with the assumption being that a pro rata paydown will occur between the B-3 and the B-6 term loans.

Commitments are due at 5 p.m. ET on April 23.

Closing is expected on April 28, the source added.

Avaya is a Santa Clara, Calif.-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.