CommScope sets price talk in $2 billion two-part notes offering; pricing expected Thursday

By Paul A. Harris

Portland, Ore., May 28 – CommScope Holding Co., Inc. set price talk in its $2 billion two-part offering of high-yield notes on Thursday, according to a market source.

The deal is coming in secured and unsecured tranches via two different issuing entities.

CommScope, Inc. is selling $500 million of five-year senior secured notes (Ba2/BB), which come with two years of call protection and are talked to yield in the 4½% area. Proceeds, along with cash on hand, will be used to repay a portion of the company’s existing term loan.

CommScope Technologies Finance LLC is selling $1.5 billion of 10-year senior unsecured notes (B2/B), which come with five years of call protection and are talked to yield 6% to 6¼%. Proceeds from the unsecured notes, along with proceeds from a concurrent $1.25 billion term loan, will be used to fund the acquisition of the Broadband Network Solutions business of TE Connectivity, Ltd.

The Rule 144A and Regulation S for life deal is expected to price Thursday.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays and Jefferies LLC are the joint bookrunners for the offering.

Regions and U.S. Bancorp Investments Inc. are the senior co-managers. Mizuho Securities and SMBC Nikko are the co-managers.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

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