CIBC World Markets and Citibank last week launched syndication of a $360 million credit for CommScope that backs the planned joint venture with Furukawa Electric Co. of Japan to buy a portion of Lucent Technologies' optical fiber business. The credit consists of a four-year $50 million revolver, an $85 million term-loan "A" and a $225 million, five-year "B" tranche. Pricing on the pro rata is LIBOR plus 3% and LIBOR plus 31/ 2% on the institutional tranche.
Hickory, N.C.-based CommScope expects to close the joint ventures by the end of October after a delay caused by the attacks on the World Trade Center. The market for new issues hasn't been great. According to bankers, investors are not committing to new paper as they take advantage of pricing levels in the secondary market. "One just has to look at Olympus Cable," one banker said. "There is nothing wrong with the paper, leverage for a cable company is not overly high, but it is trading in the mid-90s." Phil Armstrong, v.p. of investor relations for CommScope did not return calls. Dan Noonan, spokesman for Citibank could not be contacted due to phone line repair work. A CIBC spokeswoman did not return calls.