CommScope launches $1 billion term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Jan. 5 - CommScope Inc. launched its $1 billion seven-year covenant-light term loan (Ba3/BB) on Wednesday morning with price talk of Libor plus 400 basis points with a 1.5% Libor floor and an original issue discount of 99, according to market sources.

There is 101 soft call protection for one year.

JPMorgan is the lead bank on the deal.

Proceeds, along with $1.5 billion of senior notes and $1.6 billion of equity, will be used to fund the buyout of the company by the Carlyle Group for $31.50 per share in cash. The deal is valued at $3.9 billion.

As part of the transaction, the company is also getting a $400 million senior secured asset-based revolving credit facility that was already launched by JPMorgan on Dec. 8. Of the total revolver amount, up to $215 million can be used to fund the buyout.

Closing is expected in the first quarter. Stockholder approval for the buyout was obtained on Dec. 30, and in November, the company was granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

At close, secured leverage will be around 2.5 times and total leverage will be around 5.5 times.

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

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