Avaya says nearly all convertible LYONs converted to stock ahead of redemption

New York, Dec. 20 - Avaya Inc. said holders converted nearly all of its Liquid Yield Option Notes due 2021 ahead of the redemption.

The Basking Ridge, N.J., communications networks company paid cash for $61,000 principal amount at maturity of the LYONs on Dec. 20. The redemption price was $545.67 per $1,000 principal amount at maturity.

Holders of $548.7 million principal amount at maturity of the LYONs converted them to stock between delivery of the notice of redemption on Nov. 18 and the call date. The conversion ratio was 37.4437.

"The LYONs redemption and recent senior secured notes tender are the latest steps in Avaya's longstanding financial strategy to de-lever our balance sheet and strengthen our capital structure," said Garry K. McGuire, chief financial officer and senior vice president, corporate development, Avaya, in a news release.

Total debt is now $370 million, virtually all it assumed as part of the recent acquisition of Tenovis GmbH & Co. KG.

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