CommScope files for IPO

Business reports put the value of the initial public offering at $750 million.

CommScope, which was a publicly traded company before being acquired and taken private by Carlyle Group, has filed Form S-1 Registration Statement for Proposed IPO [initial public offering] with the U.S. Securities and Exchange Commission. Reporting from Reuters as well as the Charlotte Business Journal (CommScope is based in Hickory, NC) indicates the IPO will be valued at $750 million.

“CommScope intends to use the net proceeds from the offering to redeem a portion of CommScope Inc.’s 8.25 percent senior notes due 2019 and to pay related fees, expenses, and premiums,” CommScope said in a statement announcing the filing, “with the remainder of the proceeds to be used for general corporate purposes.”

The announcement also indicated the securities to be offered in the IPO will include shares to be issued and sold by CommScope as well as shares to be sold by a current stockholder of CommScope.

In October 2010, CommScope agreed to a merger with Carlyle Group for $31.50 per share, which represented a 36 percent premium over the company’s prior closing price. Shareholders approved the merger and it became official in January 2011.

For this proposed IPO, CommScope stated, it has hired J.P. Morgan, Deutsche Bank Securities and BofA Merrill Lynch as lead book-running managers.

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