CommScope seeking waivers on financial covenants under revolving credit facility

By Sara Rosenberg

New York, May 14 - CommScope Inc. is currently in negotiations with lenders to obtain waivers or amendments to total debt to EBIDTA covenants in its revolving credit facility, according to a filing with the Securities and Exchange Commission. The company expects that it may fail to comply with the covenants at the end of second quarter 2002 due to difficulties in the fiber optic cable market and poor performance of OFS BrightWave.

The revolver provides for total commitments of $350 million. The borrowing base is determined by certain financial ratios and was approximately $145 million at March 31, the filing said. During the second quarter of 2002, the borrowing base is expected to decrease to $47 million.

At March 31, the company had no outstanding borrowings under the revolver and does not anticipate drawing on the loan, which expires in December 2002.

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