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CommScope completes acquisition of Andrew
By Lisa Kerner
Charlotte, N.C., Dec. 27 - CommScope, Inc. completed its acquisition of Andrew Corp. for approximately $2.65 billion, making Andrew a wholly owned subsidiary of CommScope.
Under the companies' June 27, 2007 merger agreement, Andrew stockholders will receive $13.50 cash and 0.031543 of a share of CommScope common stock, valued at $1.50, per Andrew share.
"We believe this combination will further enhance CommScope's position as a worldwide leader in 'last mile' solutions," CommScope chairman and chief executive officer Frank M. Drendel said in a company news release.
"Combining our innovative technologies, premier brands and a top-tier customer base, we expect to expand our global service model and create an enhanced offering of communications infrastructure solutions that addresses a broader spectrum of customer needs," Drendel added.
CommScope funded the transaction through a combination of senior secured credit facilities and cash on hand. The $2.5 billion senior secured credit facilities consist of a $1.35 billion seven-year term loan with an interest rate of Libor plus 250 basis points, a $750 million six-year term loan with an initial interest rate of Libor plus 225 bps and a $400 million six-year revolving credit facility with an initial interest rate of Libor plus 225 bps.
In addition, CommScope entered into an interest rate swap in order to fix the Libor interest rate for an initial $1.5 billion of the overall credit facility.
CommScope, located in Hickory, N.C., provides infrastructure solutions for communication networks.
Andrew, based in Westchester, Ill., manufacturers and delivers solutions for the communications infrastructure market.
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