Avaya Announces Closing of Its Senior First Lien Notes Offering, Offer to Repurchase & Extend Maturity of First Lien Term Loa...
September 25 2020 - 2:20PM
Business Wire
Avaya Holdings Corp. (NYSE: AVYA) (“Avaya”) today announced that
its wholly-owned subsidiary, Avaya Inc. (the “Company”) has closed
its previously announced private offering (the “offering”) of $1
billion in aggregate principal amount of Senior First Lien Notes
due 2028 (the “notes”). The notes bear cash interest at a rate of
6.125% per annum, payable semi-annually on March 15 and September
15, beginning on March 15, 2021. The notes are the Company’s senior
secured obligations and are guaranteed on a senior secured basis by
Avaya and each of the Company’s wholly-owned domestic subsidiaries
that guarantee the Company’s term loan and asset-based revolving
credit facilities.
The Company used the proceeds from the offering to repay and/or
repurchase outstanding indebtedness under its existing senior
secured first lien term loans due December 2024 (“Existing First
Lien Term Loans”) and pay related fees, costs, and expenses. In
addition, $800 million in principal amount of the Existing First
Lien Term Loans that were not repaid/repurchased extended their
maturity from December 2024 to December 2027.
Concurrently with the transactions above, the Company extended
the maturity of its asset-based revolving facility from December
2022 to September 2025 and reduced the commitments thereunder from
$300 million to $200 million.
“These transactions represent a significant step towards
optimizing our capital structure,” said Kieran McGrath, EVP and CFO
of Avaya. “We extended the weighted average tenor of our capital
structure to over 6 years from 4 years and at the same time
staggered our maturity profile, which provides us with greater
flexibility in the future.”
The notes and the related guarantees have not been and will not
be registered under the Securities Act of 1933, as amended (the
"Securities Act"), any state securities laws or the securities laws
of any other jurisdiction, and may not be offered or sold in the
United States, or for the benefit of U.S. persons, except pursuant
to an applicable exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act and
applicable state securities or blue sky laws. Accordingly, the
notes and the related guarantees were offered only to persons
reasonably believed to be qualified institutional buyers in
reliance on Rule 144A under the Securities Act and to non-U.S.
persons outside the United States pursuant to Regulation S under
the Securities Act.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Avaya
Businesses are built by the
experiences they provide, and every day millions of those
experiences are delivered by Avaya Holdings Corp. (NYSE: AVYA).
Avaya is shaping what's next for the future of work, with
innovation and partnerships that deliver game-changing business
benefits. Our cloud communications solutions and multi-cloud
application ecosystem power personalized, intelligent, and
effortless customer and employee experiences to help achieve
strategic ambitions and desired outcomes. Together, we are
committed to help grow your business by delivering Experiences that
Matter.
Cautionary Note Regarding Forward-Looking Statements
This press release contains
certain “forward-looking statements.” All statements other than
statements of historical fact are “forward-looking” statements for
purposes of the U.S. federal and state securities laws. These
statements may be identified by the use of forward looking
terminology such as "anticipate," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "might," “our vision,”
"plan," "potential," "preliminary," "predict," "should," "will," or
“would” or the negative thereof or other variations thereof or
comparable terminology. Avaya has based these forward-looking
statements on its current expectations, assumptions, estimates and
projections. While Avaya believes these expectations, assumptions,
estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which are beyond its control. The
factors are discussed in Avaya’s Annual Report on Form 10-K and
subsequent quarterly reports on Form 10-Q filed with the Securities
and Exchange Commission (the “SEC”) available at www.sec.gov, and
may cause Avaya’s actual results, performance or achievements to
differ materially from any future results, performance or
achievements expressed or implied by these forward-looking
statements. Avaya cautions you that the list of important factors
included in Avaya’s SEC filings may not contain all of the material
factors that are important to you. In addition, in light of these
risks and uncertainties, the matters referred to in the
forward-looking statements contained in this press release may not
in fact occur. Avaya undertakes no obligation to publicly update or
revise any forward-looking statement as a result of new
information, future events or otherwise, except as otherwise
required by law.
Source: Avaya Newsroom
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version on businesswire.com: https://www.businesswire.com/news/home/20200925005479/en/
For media inquiries: Forrest Monroy fwmonroy@avaya.com
For investor inquiries: Mike McCarthy mikemccarthy@avaya.com
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