CommScope Refi: Mission Accomplished (Really)

• The Company issued a new $3.15 bn 1L Term Loan due 2029 and $1.0 bn 1L Note due 2031, using the proceeds to repay the existing TL and the 2025 Notes.
• The 2026 Notes will be repaid from proceeds of the OWN/DAS sale along with a partial paydown on the 4.75% Secured Notes.
• The modestly higher interest costs vs the November cleansing documents reflect the willingness to provide long-term financing at a higher leverage point rather than a shorter-term deal with repayment from asset sale proceeds.
• Our sum-of-the-parts valuation remains unchanged, and we make no changes to our forward EBITDA estimates; we continue to expect double-digit EBITDA growth in 2025 & 2026.

The completion of refinancing clears the maturity runway for the Company. While longer-dated bond prices are up over 150% since our May 2024 upgrade, we continue to expect double-digit EBITDA growth in 2025 and 2026, and our sum-of-the-parts valuation remains largely unchanged. And as expected, the refinancing did not include asset transfers or coercive discounts.

The 4.75% of 2029 Secured Notes are benefiting from a ~9 cent pay-down, and the debt at the 1L level is reasonable levels.

As the value of CommScope has increased, we believe there is a significant cushion of value below as these bonds remain compelling value at current prices.

On Dec 17^th, the Company announced the closing of a new $3.15 bn 1L TL and $1.0 bn 1L Secured Notes totaling $4.15 bn along with the repayment of the $3.04 bn TL and $1.25 bn of the