JWCA advises Avaya Holdings Corp on its upsized $250mm private new convertible issuance

Executed as part of $600mm capital raise in conjunction with $350mm new term loan

Transaction Background

Avaya successfully raised $250 million in a private new convertible issuance with investors (8.00% coupon and 25.7% conversion premium)

The convertible was executed as part of a $600mm capital raise in conjunction with a new $350mm senior secured term loan due 12/2027

Avaya’s objectives included optimizing the balance sheet by refinancing a portion of their outstanding 2023 Notes

J. Wood Capital Advisors helped Avaya analyze the structure and terms available in the convertible market

JWCA provided extensive analysis for Avaya on deal structuring and related items, including:

Convertible structuring
Exchange analysis and execution strategy
Call spread unwind
Accounting analysis/implications
Tax analysis/implications
Convertible documentation advice to ensure maximum value and future efficiency/flexibility for the company

JWCA provided advice, support and analysis throughout the negotiation and execution process

Results

Avaya’s convertible issuance was very well-received by investors

Retired ~$129.4mm of the $350mm face amount of the existing 2023 bonds (~37%) with minimal friction cost

Raised additional capital on Balance Sheet with purpose to repay remaining 2023 convertible notional at or before maturity