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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (62040)	3/14/2002 12:25:15 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Avaya to Sell as Much as $330 Mln in Notes to Pay Back Banks By Justin Baer 03/13 18:25 quote.bloomberg.com Basking Ridge, New Jersey, March 13 (Bloomberg) -- Avaya Inc., the biggest U.S. maker of office telephone equipment, plans to sell as much as $330 million in senior secured notes and use the proceeds to pay back a bank loan. The offering will raise $300 million, or as much as $330 million if the transaction's underwriters exercise an option to purchase additional securities, Avaya said in a statement. The company has drawn $300 million on its $1.25 billion credit line with banks, Chief Financial Officer Garry McGuire said Monday. Avaya, spun off from Lucent Technologies Inc. in 2000, is raising cash to help pay down at least some of its $1 billion in debt. The company, which lowered its forecast for fiscal second- quarter sales on Monday, also has said it will sell $100 million in stock and may shed all or part of its cabling unit. When a company issues debt that's secured, it's offering up assets, securities or other items as collateral in case it can't repay its loans. Secured lenders have first claim on assts over other investors.