Avaya Files for $1 Billion IPO (Updated w/Filing)Avaya Files for $1 Billion IPO (Updated w/Filing)

The proceeds will go to "paying down indebtedness," among other things.

Confirming rumors from earlier this week, Avaya has just announced it is filing for an initial public stock offering, seeking to raise $1 billion.

From the company's press release: "Avaya expects to use the net proceeds it receives from the offering to, among other things, pay down certain long-term indebtedness."

At this point, Avaya's not providing much more information, and the SEC doesn't have the S-1 filing statement posted yet. We'll keep you updated.

Update with SEC filing:

You can find Avaya's S-1 filing with the SEC here.

A quick take on what's to be found in the filing:

* The three uses cited in the prospectus for the IPO's proceeds are:

--repaying "a portion of our long-term indebtedness;"

--"redeem all of our outstanding Series A Preferred Stock." According to the prospectus, this preferred stock has a redemption value of $125 million plus $8 million in accrued unpaid dividends. --payments in connection with termination of a management services agreement with Silver Lake and TPG affiliates. This fee amounts to $7 million a year running through 2017, and upon completion of the IPO, a payment will be made equal to "the net present values of the monitoring fees that would have been payable during the remaining term of the management services agreement."

So, bottom-line, it looks like Avaya will be retiring significantly less than $1 billion of its debt via this IPO.

* As of March 31, 2011, Avaya's total indebtedness was $6.176 billion.

* Silver Lake and TPG, the private equity groups that bought Avaya in 2007, will continue to control a majority of the voting power of Avaya's outstanding common stock after the IPO.

* For the 12 months ended September 30, 2010 and the six months ended March 31, 2011, Avaya generated revenue of $5.060 billion and $2.756 billion, respectively.

* For the 12 months ended September 30, 2010 and the six months ended March 31, 2011, Avaya had net losses of $871 million and $612 million respectively.

* For the 12 months ended September 30, 2010, product revenue represented 51% of total revenue and services revenue represented 49%; for the six months ended March 31, 2011, product revenue represented 54% of total revenue and services revenue represented 46%.

* The share of Avaya product and services revenue attained through indirect channels grew from 67% as of March 2010 to 77% as of March 2011. The filing attributes this growth primarily to the addition of the Nortel channel. As of March 31, 2011, Avaya had approximately 9,900 channel partners total.

* For the 12 months ended September 30, 2010, approximately 55% of revenue was generated in the U.S.