By Devika Patel
Knoxville, Tenn., March 16 - CommScope, Inc. lifted a private placement of 3.5% convertible senior subordinated debentures due March 15, 2024 to $100 million from $83.25 million, according to a market source. The deal was detailed in an 8-K filed Friday with the Securities and Exchange Commission and was reopened on Monday.
The company may redeem the debentures on or after March 20, 2012 and holders may require the company to repurchase the debentures on March 20, 2012, March 15, 2014 and March 15, 2019.
The company's existing senior secured credit facility restricts its ability to repurchase the debentures for cash on March 20, 2012 and March 15, 2014 and in the event of certain fundamental corporate changes.
The debentures are immediately convertible into common shares at a rate of 99.354 shares per $1,000 principal amount of debentures, or an initial conversion price of $10.065 per share.
The company may terminate the holders' right to convert in certain circumstances.
Settlement is expected March 19.
Proceeds will be used to pay a portion of the redemption price for the company's 1% convertible senior subordinated debentures due 2024, which were are to be redeemed on March 20.
As of March 13, CommScope had approximately $175.5 million of those debentures outstanding.
CommScope provides infrastructure solutions for communication networks and is based in Hickory, N.C.
| Issuer: | CommScope, Inc.
|
| Issue: | Convertible senior subordinated debentures
|
| Amount: | $100 million
|
| Maturity: | March 15, 2024
|
| Coupon: | 3.5%
|
| Price: | Par of $1,000
|
| Yield: | 3.5%
|
| Conversion price: | $10.065
|
| Conversion ratio: | 99.354 shares per $1,000 in notes
|
| Call option: | Beginning March 20, 2012
|
| Put option: | On March 20, 2012, March 15, 2014 and March 15, 2019
|
| Warrants: | No
|
| Pricing date: | March 13
|
| Upsized: | March 16
|
| Settlement date: | March 19
|
| Stock symbol: | NYSE: CTV
|
| Stock price: | $9.15 at close March 12
|
| Market capitalization: | $610 million
|
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