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CommScope to sell upsized $3.75 billion three-part notes on Thursday
By Paul A. Harris
Portland, Ore., Feb. 7 – CommScope Inc. upsized its three-part offering of high-yield notes by $750 million and ratcheted down price talk, market sources said on Thursday morning.
The deal, now sized at $3.75 billion, is structured as follows:
• An upsized $1.25 billion of five-year senior secured notes (Ba1/BB), non-callable for two years, upsized from $1 billion. Price talk is in the 5½% area, tightened from 5½% to 5¾% (initial talk was 6% area);
• An upsized $1.5 billion of seven-year senior secured notes, non-callable for three years, upsized from $1 billion. Price talk is in the 6% area, tightened from 6% to 6¼% (initial talk 6½% area); and
• A $1 billion tranche of eight-year senior unsecured notes (B1/B+), which is non-callable for three years. Price talk is in the 8¼% area, tightened from the 8½% area (initial talk high 8% area).
The Rule 144A and Regulation S for life notes are set to price later on Thursday.
J.P. Morgan Securities LLC is left bookrunner for the secured tranches.
BofA Merrill Lynch is left bookrunner for the unsecured tranche.
JPMorgan, BofA Merrill Lynch, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are the joint bookrunners.
The issuing entity will be CommScope Finance LLC.
Proceeds will be used to help fund the acquisition of Arris International plc, a Suwanee, Ga.-based telecommunications company, for about $7.4 billion, including the repayment of debt.
Along with the upsizing of the bonds, a concurrent term loan was downsized to $3.2 billion from $3.87 billion.
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