Avaya details $1.45 billion bridge financing for LBO

By Paul A. Harris

St. Louis, Nov. 1 - Avaya Inc. disclosed the structure of $1.45 billion of senior unsecured debt financing for the leveraged buyout of the company on Thursday.

In an 8-K document field with the Securities and Exchange Commission, Avaya stated that it has in place a $700 million senior unsecured cash-pay bridge loan with initial pricing of Libor plus 362.5 basis points and a $750 million senior unsecured PIK-toggle bridge loan with initial pricing of Libor plus 387.5 bps.

Standard & Poor's assigned its CCC+ rating to $1.45 billion of notes, which are expected to result from the bridge loans.

Morgan Stanley, Citigroup and JPMorgan will lead the bond deal, according to a market source.

The financing also includes $4.335 billion of credit facilities. A bank meeting is expected to take place before the end of November.

Avaya was recently acquired by Silver Lake and TPG Capital for $17.50 in cash per share in a transaction valued at $8.2 billion.

Avaya is a Basking Ridge, N.J., provider of communication systems, applications and services.

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