CommScope, Inc. (NYSE: CTV) has amended the terms of its credit
agreement originally entered into on December 27, 2007. The amended
credit agreement permits CommScope to make, on or prior to March 23,
2009, cash payments of up to $200 million in the aggregate to acquire,
prepay, redeem or purchase its 1.00% Convertible Senior Subordinated
Debentures Due 2024.
As part of the agreement, CommScope will make a prepayment of the term
loans under the Senior Credit Agreement in the amount of $150 million.
CommScope will also pay a consent fee of 0.50% of the aggregate
outstanding principal amount of term loans, after giving affect to the
prepayment, plus 0.50% of the aggregate revolving commitments of the
lenders that approved the amendment within the deadline.
The amended credit agreement also includes:
Changing the base rate pricing option to provide that the base rate is
the highest of the then-current Federal Funds rate plus 0.50%, the
prime rate most recently announced by Bank of America, N.A., and the
one-month Eurodollar rate plus 1.00%,
Increasing the letter of credit sublimit under the revolving credit
facility to $85 million from $40 million,
Providing that the revolving credit commitments under the Senior
Credit Facilities (currently $400 million) will be automatically and
permanently reduced by an amount equal to 100% of the amount, if any,
by which aggregate payments to acquire, prepay, redeem or purchase the
1.00% Convertible Senior Subordinated Debentures exceed $100 million.
Providing that future optional prepayments of term loans during any
fiscal year will reduce the excess cash flow prepayment requirement
for such fiscal year (1) by 75% of the amount of such optional
prepayments, if CommScope’s consolidated leverage ratio as of the last
day of such fiscal year is greater than or equal to 2.50 to 1.00, and
(2) by 100% of the amount of such optional prepayments, if CommScope’s
consolidated leverage ratio as of the last day of such fiscal year is
less than 2.50 to 1.00.
A copy of the complete first amendment to the credit agreement is being
filed with the Securities and Exchange Commission.
Inc. (NYSE: CTV)(www.commscope.com)
is a world leader in infrastructure solutions for communication
networks. Through its Andrew®
brand, it is a global leader in radio frequency subsystem solutions for
wireless networks. Through its SYSTIMAX®
brands, CommScope is a world leader in network infrastructure solutions,
delivering a complete end-to-end physical layer solution, including
cables and connectivity, enclosures, intelligent software and network
design services, for business enterprise applications. CommScope also is
the premier manufacturer of coaxial cable for broadband
cable television networks and one of the leading North American
providers of environmentally secure cabinets
for DSL and FTTN applications. Backed by strong research and
development, CommScope combines technical expertise and proprietary
technology with global manufacturing capability to provide customers
with infrastructure solutions for evolving global communications
networks in more than 130 countries around the world.