OFS pays CommScope $30M, satisfying loan
July 3, 2006 -- The payment resolves a $30.0 million outstanding note issued under a revolving credit facility between CommScope and OFS BrightWave, a venture formed in 2001 by CommScope and Furukawa Electric Co.
CommScope recently announced that it received payment of $29.8 million plus accrued interest of approximately $0.5 million from OFS BrightWave, LLC. The payment satisfies and cancels the $30.0 million outstanding note issued under a revolving credit facility between CommScope and OFS BrightWave, a venture formed in 2001 by CommScope and The Furukawa Electric Co., Ltd.
The companies also agreed to terminate the revolving credit facility, which was created in 2001 and was scheduled to mature in November 2006. The $30 million long-term investment had been considered fully impaired by CommScope at the time the company exited the venture in June 2004.
"We are pleased to receive this payment and look forward to continuing our long-term relationship with OFS and Furukawa," commented Frank M. Drendel, CommScope's chairman and CEO.
CommScope expects to record the gain on the payment from OFS during the second quarter of 2006.