Avaya Inc.

bankrupt

Technology / Telecom — Silver Lake / TPG

Deal Terms

Entry Year2007

Entry EV$8.2B

Entry Multiple8x

Leverage7x

Debt Amount$6.2B

Outcome

Exit Year2017

Risk Metrics

LTV (est.)76%

Debt / EV0.76x

Notes

$8.2B Silver Lake/TPG LBO of Lucent's enterprise communications spin-off (2007). $6.2B debt. Legacy telecom hardware business declining as cloud (Zoom, Teams) emerged. Filed Chapter 11 Jan 2017. Emerged Sept 2017 cutting $3B debt. Filed AGAIN Feb 2023 (second bankruptcy). PE loaded debt on a declining business that couldn't compete with cloud disruptors.

Sponsor

TPG Inc.$230B AUM