CommScope, a provider of infrastructure solutions for communication networks, has entered into separate purchase agreements under which it will issue, in a private placement, $83.25 million aggregate principal amount of a new series of 3.50% Convertible Senior Subordinated Debentures due 2024 at par. The transactions are expected to close, subject to customary closing conditions, on March 19, 2009.
The company said that it will use the proceeds from this issuance to refinance a portion of its outstanding 1% Convertible Senior Subordinated Debentures due 2024, which have been called for redemption on March 20, 2009.
As of March 13, 2009, approximately $175.5 million in aggregate principal amount of Existing Debentures was outstanding.
The New Debentures, which were priced after the close of business on March 12, 2009, will bear interest at the rate of 3.50% per year and will mature on March 15, 2024. The company will be entitled to redeem the New Debentures on or after March 20, 2012 and holders may require the company to repurchase all or a portion of their Debentures on March 20, 2012, March 15, 2014 and March 15, 2019.
The New Debentures are immediately convertible by holders into shares of the company’s common stock at a rate of 99.354 shares per $1,000 principal amount of New Debentures, or an initial conversion price of $10.065 per share.
