CommScope ups size of planned credit facility to $175 million, to launch Friday

By Sara Rosenberg

New York, Nov. 19 - CommScope Inc. increased the size of its planned senior secured credit facility to $175 million from $150 million.

The company is scheduled to hold a bank meeting on Friday for the credit facility, which will now include an upsized $65 million five-year term loan A priced at Libor plus 275 basis points. The term loan A previously was $40 million. The facility also contains a $110 million five-year revolver with an interest rate of Libor plus 250 basis points, which was unchanged from previous expectations.

Wachovia Securities is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of Avaya Inc.'s Connectivity Solutions (ACS) business. The acquisition is valued at about $263 million. Under the agreement, Avaya will receive $210 million in cash, an $18 million convertible subordinated note from CommScope and $34.9 million in CommScope common stock, subject to adjustment, according to a news release.

The cash portion will be funded through existing cash balances and the proposed credit facility. CommScope had $171 million in cash and cash equivalents on its balance sheet as of Sept. 30.

CommScope is a Hickory, N.C., manufacturer and marketer of a broad line of coaxial, fiber-optic and other high-performance electronic cable products.

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