Avaya talks $300 million five-year convertible notes to yield 2% to 2.5%, up 27.5% to 32.5%

By Abigail W. Adams

Portland, Me., June 6 – Avaya Holdings Corp. plans to price $300 million in five-year convertible notes after the market close on Wednesday with price talk for a coupon of 2% to 2.5% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities LLC and Goldman Sachs & Co. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $50 million.

The notes are non-callable. There is dividend and takeover protection.

In connection with the offering, Avaya will enter into convertible note hedge and warrant transactions.

Avaya is a Santa Clara, Calif.-based provider of digital communications software, services and devices.

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