Investment Thesis
Avaya (AVYA) recently received a leveraged buyout offer that values it over $5 billion including debt. The company has debt valued at $3.1 billion as of March 30, 2019, which leaves $1.8 billion in equity or proposed leveraged buyout price range of $20.0-22.0 per share. We anticipate that Searchlight Capital Fund is the most serious candidate to win the potential leveraged buyout deal.
The particular fund has already signed the going private deal with the Avaya's closest competitor Mitel ([[MITL]]), and has a deep domain knowledge of networking & communications industry.