CommScope Holding Company, Inc. has priced its initial public offering of 38,461,537 shares of its common stock ("shares") at $15.00 per share. The shares are expected to begin trading Friday, October 25, on the NASDAQ Global Select Market under the ticker symbol "COMM." CommScope is offering 30,769,230 shares, and an affiliate of The Carlyle Group (the "Selling Stockholder") is offering 7,692,307 shares. The Selling Stockholder has also granted the underwriters a 30-day option to purchase up to an additional 5,769,230 shares at the initial public offering price. CommScope will not receive proceeds from any exercise by the underwriters of their option to purchase additional shares from the Selling Stockholder.
CommScope expects to receive proceeds from this offering, net of underwriting discounts, of approximately $437.3 million and intends to use the net proceeds it receives from the offering, plus cash on hand, to redeem approximately $399 million in aggregate principal amount of CommScope, Inc.'s 8.25% Senior Notes due 2019 and to pay related premiums, expenses and accrued interest.
J.P. Morgan, Deutsche Bank Securities and BofA Merrill Lynch are acting as lead book-running managers. Additional book-running managers are Barclays, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., Jefferies, Morgan Stanley & Co. LLC, RBC Capital Markets and Wells Fargo Securities. Co-Managers are Allen & Company LLC, Evercore, Raymond James, Mizuho Securities, SMBC Nikko and Drexel Hamilton.
A registration statement relating to these securities has been filed with and declared effective on October 24, 2013 by the Securities and Exchange Commission. The offering of these securities is being made only by means of a written prospectus forming part of the effective registration statement. A copy of the final prospectus related to the offering will be filed with the Securities and Exchange Commission, which may be obtained, when available, from J.P. Morgan, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204; Deutsche Bank Securities Inc., Attn: Prospectus Department, 60 Wall Street, New York, New York 10005, telephone: 800-503-4611 or email: firstname.lastname@example.org; and BofA Merrill Lynch, 222 Broadway, New York, New York, 10038, Attn: Prospectus Department or email: email@example.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Cautionary Statement Concerning Forward-Looking Statements
This release contains certain forward-looking statements regarding CommScope and its subsidiaries and the initial public offering of CommScope’s common stock. All of these statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of CommScope’s control that may cause its business, industry, strategy, financing activities or actual results to differ materially. CommScope undertakes no obligation to update or revise any of the forward looking statements contained herein, whether as a result of new information, future events or otherwise. The pricing information presented herein has been provided for indicative purposes only, is an estimate and remains subject to change.