Avaya has revealed a funding raise of $600m which will be used in part to support an “acceleration of business model transformation”.
The financing comes in the form of $350m in senior secured term loans and the placement of $250m of exchangeable senior secured notes.
Kieran McGrath, Chief Financial Officer at Avaya said: “We are pleased with the successful execution of this financing.
“This funding supports and accelerates our business model transformation and addresses our convertible notes maturing in June of next year.”
The firm had previously revealed it expected to raise $500m (via MarketWatch) but said it increased the figure due to investor demand. The funding will also be used to satisfy payments related to other funding which are due next year.
Avaya is in the midst of a transformation from its legacy business to a cloud-based model and expects to hit $1bn in annualised recurring revenue by the end of 2022.
However, two roadblocks have hindered growth over recent months, including delays to a huge CCaaS contract, resulting in missed guidance and lowered forecasts.
The vendor’s share price has fallen 85 percent since the start of the year.
