Fitch rates Avaya B, loan B+

Fitch Ratings said it assigned a B long-term issuer default rating to Avaya Inc. and a B+/RR3 to its senior secured first-lien term loan.

Prior to Avaya's emergence from bankruptcy, the agency had assigned an expected issuer default rating of B(EXP) and a B+/RR3(EXP) to the senior secured first-lien term loan.

Fitch withdrew the CCC+/RR6(EXP) rating previously assigned to the secured second-lien notes, which were not issued due to the upsizing of the senior secured first-lien term loan.

The outlook is stable.

The actions affect about $2.9 billion of debt.

On Dec. 15, Avaya emerged from bankruptcy with roughly $2.9 billion in debt, down from about $6.1 billion at the time it sought protection in the U.S. bankruptcy court under Chapter 11 in January 2017.

In addition to the senior secured first-lien debt, the company exited with about $350 million in cash.

The company also has available a $300 million asset-backed loan facility ($230 million available after letters of credit).

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