Jan. 30 (Bloomberg) -- CommScope Inc., a telecommunications-equipment provider, lowered the rate it will pay on a $993 million term loan, according to a person with knowledge of the transaction.
The interest rate on the debt maturing in 2018 will be reduced to 2.75 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 75 basis-point to 100 basis-point floor. A basis point is 0.01 percentage point.
CommScope is proposing to sell the loan at 99.75 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Lenders are being offered six months of soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first six months.
JPMorgan Chase & Co. and Deutsche Bank AG are arranging the financing for the Hickory, North Carolina-based company and commitments are due Feb. 7, according to the person.
Joseph Depa, a spokesman for CommScope, didn’t immediately respond to an e-mail seeking comment.
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