![]() ![]() New investor Brigade Capital Management bought a $125 million chunk of the new exchangeable notes, one of the people said, while multiple investors purchased the rest, according to a July regulatory filing. JPMorgan and Goldman priced the debt on June 24. ![]() To get the deal done, Avaya agreed to hike the interest rate on the loan to 10% over the Secured Overnight Financing Rate - the highest margin of the year - include an upfront fee, and add other investor protections. Investors balked at a proposed $500 million leveraged loan, forcing the company to split the planned issuance into a smaller loan and $250 million of privately-placed exchangeable notes, both secured on a first-lien basis. It brought the deal in a market weakened by recession fears, inflation and rising interest rates, after previously trimming its full-year earnings forecast. The company needed to raise money to refinance convertible bonds due in 2023 that were deeply out-of-the-money. and Microsoft Corp., wasn’t an easy sell in the leveraged loan market. ![]() LevFin Insights earlier reported on Akin’s hire, and other elements of the situation.Īvaya, which offers communications software and services and competes with the likes of Cisco Systems Inc. ![]() A representative for Akin didn’t respond to requests for comment. Representatives for Avaya, Goldman Sachs and JPMorgan declined to comment. Some holders of the company’s other first-lien loans have also joined the group, the people said. Investors who bought the company’s $350 million incremental first-lien leveraged loan have hired law firm Akin Gump Strauss Hauer & Feld to explore their options, according to people with knowledge of the matter, who asked not to be named discussing a private transaction. ![]()
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