CREDIT DAYBOOK AMERICAS: Avaya Loan Talks; Junk Bonds Rally Ends

Telecommunications equipment provider Avaya has been negotiating with first-lien lenders for a $450 million loan that would fund operations during a potential bankruptcy filing. Junk bonds are heading toward modest losses for the week, ending a two-week rally.

• The spread on the Markit CDX North American Investment Grade Index, which increases as credit risk rises, widened 0.49 basis points to 76.6 as of 7:20 a.m. New York time
• Avaya has been in talks with lenders that could hand them control of the company as part of a pre-arranged Chapter 11 filing, according to people with knowledge of the situation ...