By Chris Wack
Avaya Holdings Corp. said its Avaya Inc. subsidiary entered into an investment agreement with a qualified institutional investor relating to the issuance and sale to the investor of $150 million in 8% exchangeable senior secured notes due 2027.
Avaya Holdings shares were halted in midmorning trade at $3.39.
The company said it intends to use the proceeds from the notes offering to prefund the repayment of, repurchase, or otherwise make certain payments in respect of its existing $350 million of 2.25% convertible senior notes due 2023 and for general corporate purposes.
The notes will have an initial exchange rate of 232.6 shares of common stock per $1,000 principal amount of notes, equivalent to an initial exchange price of $4.30 a share.
The company may not redeem the notes prior to June 20, 2024.
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(END) Dow Jones Newswires
June 23, 2022 10:49 ET (14:49 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.