Why Avaya Holdings Plummeted by Nearly 15% Today
Rapidly mounting debt and an analyst's price target downgrade were the two punches knocking Avaya Holdings (NYSE: AVYA) stock to the floor on Tuesday. Even on a bleak day for the wider stock market the communications software specialist did particularly badly, falling almost 15% in price.
Already heavily burdened by indebtedness, Avaya announced last Friday that it had secured $600 million in new financing. Of this amount, $350 million consists of senior secured term loans, and the remainder in exchangeable senior secured notes. Both come due in 2027.
Although Avaya professed to be happy with the arrangement, with CFO Kieran McGrath quoted as saying that it "supports and accelerates our business model transformation and addresses our convertible notes maturing in June of next year," others had a more negative opinion.
Source Fool.com
