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CommScope, Inc. (NYSE: CTV) today announced that it has amended two credit agreements and an operating lease with its banks to exclude the non-cash equity losses and gains related to OFS BrightWave from certain ratios, among other changes. These changes resolve potential loan compliance issues related to OFS that were expected at the end of the second quarter of 2002.
Changes to the unsecured revolving credit agreement also include a reduction of the facility size to $250 million from $350 million. CommScope has no outstanding borrowings under this facility and does not expect future borrowings under this facility since the Company believes that cash from operations will be sufficient to meet anticipated working capital requirements during the remaining term of the facility, which expires in December 2002.
CommScope acquired an 18.4% ownership interest in OFS BrightWave, an optical fiber and fiber cable venture between CommScope and Furukawa Electric Co., Ltd. (Tokyo: 5801), during the fourth quarter of 2001 and CommScope is reporting results using the equity method of accounting for this investment.
Through its relationship with OFS, CommScope has an ownership interest in one of the world's largest producers of optical fiber and cable and has access to a broad array of technologically advanced optical fibers.
CommScope is the world's largest manufacturer of broadband coaxial cable for Hybrid Fiber Coax (HFC) applications and a leading supplier of high- performance fiber optic and twisted pair cables for LAN, wireless and other communications applications.
This press release contains forward-looking statements regarding outlook and expectations for CommScope that are based on information currently available to management, management's beliefs and a number of assumptions concerning future events. Forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, which could cause the actual results to differ materially from those currently expected. The potential risks and uncertainties that could cause actual results to differ materially include, but are not limited to, the impact of slowdown of spending by Adelphia, the ability to collect Adelphia's receivables, product demand and industry excess capacity, competitive products and pricing, changes or fluctuations in global economic conditions, telecommunications industry capital spending, expected demand from AT&T and major domestic MSOs, financial performance of OFS BrightWave, changes in cost and availability of key raw materials, successful operation of bimetals manufacturing and other vertical integration activities, pricing and acceptance of products, successful expansion and related operation of our facilities, developments in technology, industry competition, ability to obtain financing and capital on commercially reasonable terms, ability of our customers to secure adequate financing or to pay, regulatory changes affecting our industries, acquisition activities, possible disruption due to terrorist activity or armed conflict and other factors. For a more detailed description of factors that could cause such a difference, please see CommScope's filings with the Securities and Exchange Commission. In providing forward-looking statements, the Company does not intend, and is not undertaking any duty or obligation, to update these statements as a result of new information, future events or otherwise.
Web site: www.commscope.com
Phil Armstrong, Investor Relations
or Betsy Lambert, APR, Media Relations