Like many other prospective public offerings, Avaya’s pending trick-or-treat IPO would appear to be in suspended animation. The company and its agents wanted to get the deal done this year, but there’s been no word on whether it will go ahead before the sands in 2011’s hourglass run down.
Avaya signaled its intentions and filed the requisite paperwork in June, but then economic conditions worsened. Here’s an excerpt from a post I wrote about the pending IPO when all the leaves were still on the trees:
“We don’t know when Avaya will have its IPO, but we learned a couple weeks ago that the company will trade under the symbol ‘AVYA‘ on the New York Stock Exchange.
Long before that, back in June, Avaya first indicated that it would file for an IPO, from which it hoped to raise about $1 billion. Presuming the IPO goes ahead before the end of this year, Avaya could find itself valued at $5 billion or more, which would be about 40 percent less than private-equity investors Silver Lake and TPG paid to become owners of the company back in 2007.”
Making Moves While Waiting for Logjam to Clear
Speaking of Silver Lake and TPG, they must feel a particular urgency to get this deal consummated. As mentioned in my previous post, they want to use the proceeds to pay down rather substantial debt (total indebtedness was $6.176 billion as of March 31), redeem preferred stock, and pay management termination fees to Avaya’s sponsors, which happen to be Silver Lake and TPG. That’s plenty of incentive.
The lead underwriters for the transaction, when it eventually occurs, will be J.P. Morgan, Morgan Stanley, and Goldman Sachs & Company.
Avaya hasn’t been sitting on its hands while waiting to go public. The company acquired SIP-security specialist Sipera, a purveyor of session border controllers (SBC) and unified-communications (UC) security solutions, early this month. It followed that move with the acquisition of Aurix, a UK-based provider of speech analytics and audio data-mining technology.
Financials terms were not disclosed regarding either transaction.