CommScope holders convert all 3.5% convertibles into common stock

By Susanna Moon

Chicago, June 3 - CommScope, Inc. said holders converted all $100 million of the company's 3.5% convertible senior subordinated debentures due 2024 into common stock after it issued conversion termination notices on May 29.

As previously noted, CommScope may terminate conversion rights if its closing share price exceeds 150% of the conversion price for 20 trading days out of a 30-consecutive-trading-day period. The conversion price is $10.065. CommScope stock closed at $24.91 (NYSE: CTV) on May 28.

Holders were able to convert their securities for common shares as well as a coupon make-whole payment until June 18.

The company previously said it would deliver the notices after it completed the proposed public offerings of $200 million of senior subordinated convertible notes due 2015 and 8 million shares of common stock.

The debentures were converted at a rate of 99.354 shares per $1,000 principal amount.

The convertibles were issued in a private placement in March.

The company expects to incur a noncash charge of about $11.5 million in the second quarter for the coupon make-whole payment related to the conversion.

CommScope provides infrastructure solutions for communication networks and is based in Hickory, N.C.

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