Confirming rumors from earlier this week, Avaya has just announced it is filing for an initial public stock offering, seeking to raise $1 billion.
From the company's press release: "Avaya expects to use the net proceeds it receives from the offering to, among other things, pay down certain long-term indebtedness."
At this point, Avaya's not providing much more information, and the SEC doesn't have the S-1 filing statement posted yet. We'll keep you updated.
Update with SEC filing:
You can find Avaya's S-1 filing with the SEC here.
A quick take on what's to be found in the filing:
* The three uses cited in the prospectus for the IPO's proceeds are:
--repaying "a portion of our long-term indebtedness;"
--"redeem all of our outstanding Series A Preferred Stock." According to the prospectus, this preferred stock has a redemption value of $125 million plus $8 million in accrued unpaid dividends. --payments in connection with termination of a management services agreement with Silver Lake and TPG affiliates. This fee amounts to $7 million a year running through 2017, and upon completion of the IPO, a payment will be made equal to "the net present values of the monitoring fees that would have been payable during the remaining term of the management services agreement."
So, bottom-line, it looks like Avaya will be retiring significantly less than $1 billion of its debt via this IPO.
* As of March 31, 2011, Avaya's total indebtedness was $6.176 billion.
* Silver Lake and TPG, the private equity groups that bought Avaya in 2007, will continue to control a majority of the voting power of Avaya's outstanding common stock after the IPO.
* For the 12 months ended September 30, 2010 and the six months ended March 31, 2011, Avaya generated revenue of $5.060 billion and $2.756 billion, respectively.
* For the 12 months ended September 30, 2010 and the six months ended March 31, 2011, Avaya had net losses of $871 million and $612 million respectively.
* For the 12 months ended September 30, 2010, product revenue represented 51% of total revenue and services revenue represented 49%; for the six months ended March 31, 2011, product revenue represented 54% of total revenue and services revenue represented 46%.
* The share of Avaya product and services revenue attained through indirect channels grew from 67% as of March 2010 to 77% as of March 2011. The filing attributes this growth primarily to the addition of the Nortel channel. As of March 31, 2011, Avaya had approximately 9,900 channel partners total.
* For the 12 months ended September 30, 2010, approximately 55% of revenue was generated in the U.S.
