Avaya Announces Closing of Its Senior First Lien Notes Offering, Offer to Repurchase and Extend Maturity of First Lien Term Loans and Extension of Maturity of ABL Facility

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.