CommScope Announces Completion of Strategic Refinancing Transaction

CommScope Holding Company, Inc. (NASDAQ: COMM) announced on December 17, 2024, the completion of a strategic refinancing transaction. This comprehensive refinancing, referred to as the “Transaction,” was closed with the company’s direct subsidiary, CommScope, LLC (CommScope), involving various refinancing activities aimed at strengthening the company’s capital structure.

The Transaction included the issuance and sale of $1,000 million in aggregate principal amount of New Secured Notes, the establishment of a New Term Loan Facility, and the effectiveness of ABL Amendment No. 3. CommScope utilized the net proceeds from these transactions, along with cash on hand and borrowings under the Revolving Credit Facility, to refinance its existing senior secured term loan facility and redeem senior notes due in 2025.

Under the New Term Loan Facility, an initial aggregate principal amount of $3,150 million was agreed upon, maturing in December 2029. The facility offers flexibility for potential future expansions, subject to certain conditions, without requiring consent from existing lenders. Borrowings under this facility are not subject to amortization and bear interest based on certain margins.

The New Secured Notes, amounting to $1 billion, due in 2031, were also issued as part of the Transaction. These notes, guaranteed on a senior secured basis, will be equally and ratably secured with other lien indebtedness of CommScope.

The Company also announced the signing with a group of existing lenders, including funds managed by Apollo and Monarch, to secure the New First-Lien Debt, with $3.15 billion in term loans and $1 billion in notes. These funds will help in meeting existing debt obligations and position the company for future growth.

The completion of the OWN/DAS asset sale, expected in Q1 2025, will further support CommScope’s financial position, allowing the company to reduce its total debt. CommScope’s upcoming business performance, in conjunction with these refinancing activities, is expected to set a solid foundation for the Company’s operations.

CommScope’s President and CEO, Chuck Treadway, emphasized that this transaction is a significant move towards aligning the company for long-term growth. The refinancing and leverage improvements aim to provide flexibility and focus on core business operations while investing in future opportunities as the telecommunications industry evolves.

The refinancing initiative was supported by financial advisors and legal counsels from Moelis & Company LLC, Latham & Watkins LLP, C Street Advisory Group, and PJT Partners and Gibson Dunn & Crutcher LLP, representing the lenders.

Forward-looking statements in this announcement should be considered in conjunction with the risks and uncertainties outlined by CommScope in its filings with the U.S. Securities and Exchange Commission. The company remains vigilant in navigating potential challenges and ensuring operational growth in the evolving marketplace.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CommScope’s 8K filing here.

About CommScope

CommScope Holding Company, Inc provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates through Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments.