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S&P rates CommScope notes B+
Standard & Poor's said it assigned a B+ rating and 5 recovery rating to CommScope Inc.'s proposed $550 million seven-year senior unsecured notes and $550 million 10-year senior unsecured notes.
The 5 recovery rating indicates 10% to 30% expected default recovery.
The proceeds will be used to refinance the company's existing $1.1 billion 8¼% senior unsecured notes due January 2019.
The ratings on the company's existing senior secured bank loan ratings and the holding company's pay-in-kind toggle notes are unaffected by this transaction.
The corporate credit rating and outlook on the company are unchanged by the proposed transaction, S&P said.
Although the company will be required to pay a call premium of about $94 million due to the early repayment of the existing 8¼% senior unsecured notes, its future cash flow should improve substantially given the lower expected interest expense, the agency said.
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