By Paul A. Harris
Portland, Ore., May 28 – CommScope Holding Co., Inc. priced $2 billion of high-yield notes in two tranches on Thursday, according to a market source.
The deal came in secured and unsecured tranches via two different issuing entities.
CommScope, Inc. priced $500 million of five-year senior secured notes (Ba2/BB) at par to yield 4 3/8%. The yield printed at the tight end of yield talk 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 priced $1.5 billion of 10-year senior unsecured notes (B2/B) at par to yield 6%. The yield printed at the tight end of the 6% to 6¼% yield talk.
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.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays and Jefferies LLC were the joint bookrunners for the offering.
CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.
| Company: | CommScope Holding Co., Inc.
|
| Amount: | $2 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays, Jefferies LLC
|
| Senior co-managers: | Regions, U.S. Bancorp Investments Inc.
|
| Co-managers: | Mizuho, SMBC Nikko
|
| Trade date: | May 28
|
| Settlement date: | June 11
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Issuer: | CommScope, Inc.
|
| Amount: | $500 million
|
| Maturity: | June 15, 2020
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 287 bps
|
| Call protection: | Two years
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Price talk: | 4½% area
|
|
|
| Senior unsecured notes
|
| Issuer: | CommScope Technologies Finance LLC
|
| Amount: | $1.5 billion
|
| Maturity: | June 15, 2025
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 387 bps
|
| Call protection: | Five years
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Price talk: | 6% to 6¼%
|
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