CommScope to repay up to $400 million of debt per year beginning in 2010

By Jennifer Lanning Drey

Portland, Ore., Dec. 11 - CommScope, Inc. expects to generate sufficient cash flow to repay $300 million to $400 million of debt per year beginning in 2010 until borrowings are fully paid off, Brian Garrett, chief operating officer of CommScope, said during a Thursday presentation at the Barclays Capital Global Technology Conference in San Francisco.

Garrett also said the company is prepared to potentially repay $200 million of outstanding 1% convertible senior subordinated debentures in March 2009 when holders of the notes have a repurchase right.

The company's other outstanding debt includes $1.33 billion outstanding on its seven-year senior secured term loan and $650 million on its six-year senior secured term loan.

"We firmly believe that our debt is manageable," Garrett said.

CommScope repaid about $400 million of debt in 2008, and the company had $496.3 million of cash and cash equivalents at Sept. 30.

The company expects to generate more than $170 million of free cash flow in the fourth quarter and will look to improve cash flows in 2009 in part by improving inventory turns.

Additionally in 2009, CommScope plans to implement cost savings while focusing on emerging markets where the company believes it is most poised for growth, he said.

Based in Hickory, N.J., CommScope provides infrastructure technology for communications networks.

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