CommScope leaps on new refinancing agreements with lenders, including Apollo

Vistance Networks

18/12/2024 14:14

** Shares of CommScope Holding  COMM.O  leap 24.8% premarket to
$7, a six-week high, after co announced strategic refinancing
transaction
** Communication network infrastructure provider late Tues said
entered new agreements with a group of existing lenders
including Apollo  APO.N  and Monarch Alternative Capital
    ** New agreements include a $3.15 bln first-lien term loan
maturing in 2029, and $1 bln in first-lien notes maturing in
2031
    ** Proceeds from the new debt will enable it to fully repay
its senior unsecured notes due 2025, and its existing senior
secured term loan facility, COMM said
** Expected proceeds from its sale of outdoor wireless networks
and distributed antenna systems units to Amphenol  APH.N  for
$2.1 bln, announced in July, expected to close in Q1 2025, will
be used to fully repay its senior secured notes due 2026, co
said
** “This transaction is a pivotal step forward in our ongoing
process to positionCommScopefor long-term growth,” CEO Chuck
Treadway said in statement
    ** Through Tues close, COMM shares have more than quadrupled
over the past six months
    ** In 2024, stock has traded as low as 86 cents (Apr 25) and
as high as $7.19 (Nov 6)

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))