CommScope amends loan, allowing for repurchase of convertibles

By Sara Rosenberg

New York, Dec. 26 - CommScope Inc. amended its credit facility, allowing for the repurchase of up to $200 million of its 1% convertible senior subordinated debentures due 2024, according to a news release.

The repurchase has to be made before March 23.

The amendment also increased the revolver letter-of-credit sublimit to $85 million from $40 million and calls for a reduction in the revolver size by the amount of cash used to repurchase the convertibles in excess of $100 million.

In addition, the amendment provides that future optional term loan prepayments will reduce the excess cash flow prepayment requirement by 75% of the amount of such optional prepayments if consolidated leverage is greater than or equal to 2.50 to 1.00, and by 100% of the amount of such optional prepayments if consolidated leverage is less than 2.50 to 1.00.

As part of the amendment, the company will prepay $150 million of its term loan debt.

Also, lenders are getting a 50 basis point consent fee.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.