Avaya prices USD 300m of 2.25% convertible senior notes

Avaya Holdings Corp. (NYSE: AVYA) has announced the pricing of USD 300 million in aggregate principal amount of 2.25% Convertible Senior Notes due 2023 in a private offering to qualified institutional buyers, the company said.

The convertible notes will be convertible into cash, shares of Avaya common stock or a combination thereof, at the company´s election, based on an initial conversion rate of 36.0295 shares of common stock per USD 1,000 principal amount (equivalent to an initial conversion price of approximately USD 27.76 per share, which represents a premium of approximately 30.0% to the NYSE closing price of Avaya´s common stock on the date hereof).

The company granted an option to the initial purchasers to purchase up to an additional USD 50 million in aggregate principal amount of convertible notes. The convertible notes will bear cash interest at a rate of 2.25% per annum, payable semi-annually on June 15 and December 15, beginning on December 15, 2018.

The company intends to use USD 22.4 million of the proceeds from this offering to pay the cost of the convertible note hedge transactions described below (after such cost is partially offset by the proceeds received by the company from the warrant transactions described below) and for general corporate purposes.

Avaya is a global provider of digital communications software, services and devices for businesses of all sizes. For more information, visit www.avaya.com.