On December 17, CommScope announced that it has closed a comprehensive refinancing transaction with its first-lien secured lenders that will enable the company to address its upcoming debt maturities, securing commitments for $3.15 billion in new first-lien term loans and $1 Billion in first-lien notes.
CommScope president and CEO Chuck Treadway called the transaction a pivotal step forward, saying it will position the company for growth in the coming years.
“By successfully addressing our near-term maturities and greatly improving our pro forma leverage ratio, we move forward with the flexibility to focus on our core businesses and invest in the technology, products, and personnel to better deliver for our customers, and capitalize as the telecom industry recovers in the coming quarters,” said Treadway in a press release. “We will continue to explore opportunities to leverage the significant flexibility available under our credit agreements to further reinforce our capital structure as market conditions evolve.”
The new agreements with a group of CommScope’s existing first-lien lenders, including funds managed by Apollo and Monarch Alternative Capital, combined with expected proceeds from the sales of the company’s Outdoor Wireless Networks segment and Distributed Antenna Systems will allow CommScope to repay several loans.
