Avaya to launch $2.43 billion first-lien term loan on Wednesday

By Sara Rosenberg

New York, Oct. 26 – Avaya Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $2,425,000,000 first-lien term loan, according to a market source.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the leads on the deal.

Proceeds will be used to help fund the company’s emergence from Chapter 11.

Based on the commitment letter, the term loan is expected to have a seven-year maturity and pricing of Libor plus 450 basis points.

Along with the term loan, the company has received a commitment for a $300 million five-year senior secured asset-based lending facility that is expected to be priced at Libor plus 175 bps, subject to a grid based on average daily historical excess availability.

Avaya is a Santa Clara, Calif.-based business communications company. The company filed bankruptcy on Jan. 19, 2017 under Chapter 11 case number 17-10089.

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