Bonds of Avaya Inc., the communications-gear maker owned by private-equity firms, dropped to the lowest level in four months as the company reported a decline in quarterly revenue.
The company’s $700 million of 9.75 percent notes maturing in November 2015 fell 7 cents to 90.5 cents on the dollar to yield 13.3 percent at 4:55 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That’s the biggest fall for the bonds since they dropped by 9.25 cents on Aug. 25 and the lowest since Jan. 4.
Avaya reported $1.26 billion in revenue for the first three months of the year, down 9.6 percent from the same period last year, according to a quarterly filing today. The company, which has $6.1 billion in long term debt, the filing showed, said its net loss narrowed to $162 million from $432 million.
The 9.75 percent notes of the Basking Ridge, New Jersey-based company are rated Caa2 by Moody’s Investors Service and CCC+ by Standard & Poor’s.