CommScope Holding Stock Rises On Strategic Refinancing: Retail’s Optimistic

Shares of CommScope Holding Company Inc. ($COMM) rose 0.60% during Tuesday’s after-hours trading session following its announcement of a debt refinancing transaction to strengthen its capital structure, lifting retail sentiment.

CommScope, a provider of network connectivity solutions, entered the refinancing deal with its “first-lien” secured lenders, the company said. The debt refinancing will enable the company to address its upcoming 2025 and 2026 debt maturities and position the company for future success, it added.

The first-lien lenders include funds managed by Apollo and Monarch Alternative Capital. The debt includes a new $3.15 billion first-lien term loan, maturing in 2029, and $1 billion in first-lien notes, maturing in 2031.

Following the news, retail sentiment on Stocktwits was ‘extremely bullish’. Message volumes were  at ‘extremely high’ levels.

“This transaction is a pivotal step forward in our ongoing process to position CommScope for long-term growth,” Chuck Treadway, president and CEO of CommScope, said in a statement.  

“By successfully addressing our near-term maturities and greatly improving our pro forma leverage ratio, we move forward with the flexibility to focus on our core businesses and invest in the technology, products, and personnel to better deliver for our customers, and capitalize as the telecom industry recovers in the coming quarters."

For its most recent quarter, the company’s non-GAAP adjusted net loss per diluted share narrowed to $0.05 from $0.12.

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