CommScope (CTV) to Offer 8M Shares, $200M Convertible Senior Subordinated Notes

May 21, 2009 9:42 AM EDT

Last night, CommScope, Inc. (NYSE: CTV) said it is proposing public offerings of its convertible senior subordinated notes and common stock.

CommScope intends to offer, subject to market and other conditions, $200 million aggregate principal amount of its convertible senior subordinated notes due 2015. In connection with this offering, CommScope intends to grant the underwriters a 30−day option to purchase up to an additional $30 million principal amount of the notes. The notes will be convertible into shares of CommScope common stock. The offering price, interest rate, conversion price and other terms of the notes will be determined by CommScope and the underwriters.

CommScope also intends to offer concurrently, subject to market and other conditions, eight million shares of its common stock. In connection with this offering, CommScope intends to grant the underwriters a 30−day option to purchase an additional 1.2 million shares of common stock. Neither the notes offering nor the common stock offering is conditioned on consummation of the other offering.

The net proceeds from the notes offering and common stock offering will be used to repay a portion of the amounts outstanding under CommScope's senior secured credit facilities in conjunction with an amendment to the credit facilities. To the extent that net proceeds from the two offerings exceed $400 million, such excess proceeds will be used for general corporate purposes, including potentially paying down additional indebtedness under CommScope's credit facilities.

J.P. Morgan Securities Inc., Merrill Lynch & Co. and Wachovia Capital Markets, LLC are acting as joint book-running managers for the convertible senior subordinated notes offering, and J.P. Morgan Securities Inc., Merrill Lynch & Co. and UBS Securities LLC are acting as joint book-running managers for the common stock offering.

Related Categories

Corporate News
Equity Offerings

Stocks Mentioned

Related Entities

• UBS
• JPMorgan
• Merrill Lynch
• Wachovia

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