NOTICE
OF DESIGNATED EVENT AND OFFER
TO PURCHASE
ANDREW
CORPORATION
Offer
to Purchase for Cash any and
all of the Outstanding
3¼%
Convertible Subordinated Notes
due 2013 of Andrew Corporation
(CUSIP
No. 034425
AA6)
(CUSIP
No. 034425
AB4)
The
Offer (as defined below) will
expire at 5:00 p.m., New York City time, on February 15, 2008 unless extended
or
earlier terminated (such time and date, as the same may be extended, referred
to
as the “expiration time”). Holders must tender their Notes in the
manner described below on or prior to the expiration time to receive the
purchase price. Notes tendered in the Offer may be withdrawn at any
time prior to the expiration time.
NOTICE
IS
HEREBY GIVEN pursuant to the terms and conditions of the Indenture dated
as of
August 8, 2003, between Andrew Corporation (referred to as “we,” “us,” “our,”
“Andrew,” or the “Company”) and The Bank of New York Trust Company, N.A.,
formerly known as BNY Midwest Trust Company, as trustee ( “Trustee”), as amended
and supplemented (as so amended and supplemented, the “Indenture”) by the First
Supplemental Indenture dated as of December 27, 2007 (the “Supplemental
Indenture”) between the Company and the Trustee, that on December 27, 2007, an
indirect wholly-owned subsidiary of CommScope, Inc. (“CommScope”) merged (the
“Merger”) with and into the Company, and the Company became an indirect
wholly-owned subsidiary of CommScope. The Merger constitutes a
“Designated Event” under the Indenture.
As
required by the Indenture, we are hereby making an offer to repurchase all
of
the Company’s 3¼ % Convertible Subordinated Notes due 2013 (the “Notes”) to the
holders thereof, subject to the terms and conditions of this Notice of
Designated Event and Offer to Purchase (as amended and supplemented from
time to
time, the “Offer to Purchase”). In accordance with the Indenture, we
are hereby offering to purchase each $1,000 principal amount of the Notes
at a
purchase price of 100% of the principal amount, on the Designated Event
Repurchase Date (“Designated Event Repurchase Date”), which will be February 15,
2008. On February 15, 2008, the Company will make a semi-annual
interest payment on the Notes to holders of record as of February 1,
2008. The offer to purchase the Notes on the terms set forth in this
Offer to Purchase is referred to herein as the “Offer.”
This
Notice of Designated Event and Offer to Purchase constitutes the notice required
by Section 14.07 of the Indenture.
In
connection with the Merger, the Company and the Trustee entered into the
Supplemental Indenture, which provides, among other things, that in accordance
with and subject to the provisions of the Indenture, Holders of the Notes
will
be entitled to convert each $1,000 principal amount of the Notes into $986.15
in
cash and 2.304159 shares of CommScope common stock, par value $0.01 per share
(“CommScope Common Stock”), subject to adjustment from time to time and payments
for fractional shares as provided in the Indenture. Holders should read
| “Conversion
Rights with Respect to the Notes” for more information about the
conversion rights. On January 9, 2008, the closing price of CommScope
Common Stock on the New York Stock Exchange (“NYSE”) was $42.37 per share.
Notice of the execution of the Supplemental Indenture is hereby provided
to you in accordance with the Indenture. |
Holders
are urged to review this Offer to Purchase and the documents incorporated
by
reference herein carefully and consult with their own financial and tax advisors
before deciding whether to tender their Notes in the Offer. Neither
CommScope nor we, or any of our affiliates, officers or directors, or the
Trustee or paying agent make any recommendation as to whether or not Holders
should tender Notes pursuant to the Offer.
Neither
the Securities and Exchange
Commission (“the SEC”) nor any state securities commission nor any other
regulatory authority has approved or disapproved of these transactions or
determined if this statement is truthful or complete. Any
representation to the contrary is a criminal offense.
The
date
of this Offer to Purchase is January 10, 2008.
TABLE
OF CONTENTS
| |
Page
|
|
Summary
Term Sheet
|
2
|
|
Available
Information
|
7
|
|
Incorporation
By Reference
|
7
|
|
Note
Regarding Forward-Looking Statements
|
9
|
|
The
Offer
|
10
|
| |
Introduction
|
10
|
| |
Terms
of the Offer
|
11
|
| |
Certain
Information Concerning the Offeror
|
12
|
| |
Purpose
of the Offer
|
12
|
| |
Price
Range of Notes and Common Stock; Dividends
|
12
|
| |
Conversion
Rights with Respect to the Notes
|
14
|
| |
Acceptance
of Notes for Payment
|
15
|
| |
Expiration,
Extension, Amendment, Termination or Withdrawal of the
Offer
|
16
|
| |
Procedures
for Tendering Notes
|
16
|
| |
Withdrawal
of Tenders
|
19
|
| |
Source
and Amount of Funds
|
20
|
| |
Conditions
of the Offer
|
22
|
| |
Plans
and Proposals of the Company
|
22
|
| |
United
States Federal Income Tax Consequences
|
23
|
| |
Fees
and Expenses; Solicitations
|
27
|
_________________________
No
person
has been authorized to give any information or to make any representations
other
than those contained in this Offer to Purchase and, if given or made, such
information or representations must not be relied upon as having been
authorized. This Offer to Purchase does not constitute an offer to
buy or the solicitation of an offer to sell securities in any circumstances
or
jurisdiction in which such offer or solicitation is unlawful. The
delivery of this Offer to Purchase shall not, under any circumstances, create
any implication that the information contained or incorporated by reference
herein is current as of any time subsequent to the date of this Offer to
Purchase, or the date of any documents incorporated by reference, as
applicable.
We
and
our affiliates, including our executive officers and directors, will be
prohibited by Rule 13e-4 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), from purchasing any of the Notes outside of the Offer for
ten business days after the expiration of the Offer. Following that
time, we expressly reserve the absolute right, in our sole discretion from
time
to time in the future, to purchase any of the Notes, whether or not any Notes
are purchased by the Company pursuant to the Offer, through open market
purchases, privately negotiated transactions, tender offers, exchange offers
or
otherwise, upon such terms and at such prices as we may determine, which
may be
more or less than the price to be paid pursuant to the Offer and could be
for
cash or other consideration. We cannot assure you as to which, if
any, of these alternatives, or combination thereof, we will pursue.
SUMMARY
TERM SHEET
The
following are answers to some of the questions that you, as a Holder of our
outstanding 3¼% Convertible Subordinated Notes due 2013 (the
“Notes”), may have. We urge you to read the remainder of this Offer
to Purchase carefully because the information in this summary term sheet
is not
complete. Additional important information is contained in the
remainder of this Offer to Purchase.
Who
is offering to purchase my
Notes?
Andrew
Corporation, a Delaware corporation and the original issuer of the Notes,
is
offering to purchase the Notes. Andrew Corporation is referred to as
“we,” “our”, “Andrew” or the “Company” in this Summary Term Sheet. We
became a indirect wholly-owned subsidiary of CommScope, Inc., a Delaware
corporation (“CommScope”), on December 27, 2007, as the result of the merger of
an indirect wholly-owned subsidiary of CommScope with and into us.
What
securities are you offering to
purchase in the Offer?
We
are
offering to purchase any and all of our outstanding 3¼% Convertible Subordinated
Notes due 2013. The offer to purchase the Notes on the terms set forth in
this
Offer to Purchase is referred to herein as the “Offer.” As of January 9, 2008
there was $164,411,000 in aggregate principal amount of the Notes
outstanding. We issued the Notes under the Indenture. See
“Introduction.”
Are
there any conditions to the
Offer?
We
are
offering to purchase all outstanding Notes. The Offer is not
conditioned upon the tender of a minimum amount of Notes and is not subject
to
any financing condition. The only conditions to the Offer are (i) the
timely and proper delivery and tender of Notes in accordance with the terms
of
this Offer to Purchase and (ii) that the Offer must comply with applicable
law. See “Conditions of the Offer.”
Why
are you offering to purchase my
securities?
We
are
offering to purchase the Notes to satisfy our contractual obligation under
Section 14.05 of the Indenture relating to the Notes to offer to repurchase
the
Notes after a Designated Event, as defined in the Indenture. The
merger (the “Merger”) of CommScope’s indirect wholly-owned subsidiary with and
into the Company on December 27, 2007 resulted in each outstanding share
of
common stock of the Company being converted into the right to receive $13.50
in
cash and 0.031543 shares of CommScope common stock, par value $0.01 per share
(“CommScope Common Stock”), and therefore the Merger constitutes a Designated
Event. See “Purpose of the Offer.”
How
much are you offering to pay and
what is the form of payment?
In
accordance with the Indenture, we are offering to purchase the Notes, at
a
purchase price in cash equal to 100% of the principal amount of the Notes,
on
the Designated Event Repurchase Date, which will be February 15, 2008, which
is
between 20 and 35 business days after the date
of
this Notice of Designated Event and Offer to
Purchase, as required under Section 14.05 of the Indenture. On
February 15, 2008, the Company will make a semi-annual interest payment on
the
Notes to holders of record as of February 1, 2008. See “Terms of the
Offer.”
What
are my conversion rights with
respect to my Notes?
As
a
result of the Merger, each $1,000 principal amount of the Notes may be converted
at the option of the Holder on the terms and subject to the conditions of
the
Indenture into $986.15 in cash and 2.304159 shares of CommScope Common Stock
(subject to adjustment from time to time and payments for fractional shares,
as
provided in the Indenture). However, Holders may not convert Notes
tendered in the Offer without first validly withdrawing those Notes. Fractional
shares of CommScope Common Stock will not be issued upon conversion. Instead,
CommScope will pay cash for any fractional shares of CommScope Common Stock
Holders would otherwise have received. CommScope Common Stock is
listed on the NYSE under the symbol “CTV.” On January 9, 2008, the closing price
of CommScope Common Stock on the NYSE was $42.37 per share. Based on the
current
conversion rate and this price, the consideration into which the Notes are
convertible has a value of approximately $1,083.78 per $1,000 principal amount
of the Notes. See “Conversion Rights with Respect to the
Notes.”
If
I do not tender, will I continue
to be able to exercise my conversion rights?
You
will
be able to convert your Notes until the Designated Event Repurchase Date
subject
to the terms of the Indenture, provided that you do not submit your Notes
for
purchase. See “Conversion Rights with Respect to the Notes.”
If
I do not tender, will I have the
right to require the Company to repurchase my Notes in the
future?
We
are
making the Offer to satisfy our obligation under the Indenture to offer to
repurchase the Notes as a result of the Designated Event that occurred with
respect to the consummation of the Merger. Upon expiration of the Offer,
we will
have no further obligation to repurchase your Notes (i) unless another
Designated Event occurs in the future, in which case we would again be obligated
to offer to repurchase your Notes, and (ii) in accordance with the terms
of the
Indenture, you may require the Company to repurchase your Notes for cash
on
August 15, 2008, at a repurchase price of 100% of their principal amount,
plus
accrued and unpaid interest, to, but excluding, the applicable repurchasing
date.
What
is the market value of the
Notes?
There
is
no established reporting or trading system for the Notes; however, the Notes
currently are traded over-the-counter. Accordingly, there is no practical
way to
determine the trading history of the Notes. We believe that trading
in the Notes has been limited and sporadic. See “Price Range of Notes
and Common Stock; Dividends.”
Do
you have the financial resources
to make payment?
Yes.
The
company estimates that it will need approximately $167,132,700 to purchase
all
of the Notes pursuant to the Offer, to pay accrued interest and to pay related
fees and expenses. The
Company
expects this amount to be provided through
cash advanced by CommScope, which will utilize its available cash on hand,
and
through borrowings under its existing credit facility. See “Source and Amount of
Funds.”
How
long do I have to tender in the
Offer?
You
have
until 5:00 p.m., New York City time, on February 15, 2008 unless we extend
or
earlier terminate the Offer, to tender your Notes in the Offer. See
“Terms of the Offer” and “Expiration, Extension, Amendment, Termination or
Withdrawal of the Offer.”
Can
the Offer be extended, and under
what circumstances?
We
may
extend the Offer, subject to applicable law and provided that no later than
March 3, 2008 we make payment for all Notes validly tendered and not
withdrawn. We will publicly announce any extension as promptly as
practicable after the previously scheduled expiration of the
Offer. Without limiting the manner in which we may choose to make any
public announcement, we shall be under no obligation to publish, advertise
or
otherwise communicate any public announcement other than by issuing a press
release. See “Expiration, Extension, Amendment, Termination or
Withdrawal of the Offer.”
How
do I tender my
Notes?
To
tender
your Notes for purchase pursuant to the Offer, you must tender the Notes
through
the applicable automated tendering system (“ATOP”), administered by The
Depository Trust Company (“DTC”) no later than 5:00 p.m., New York City time, on
February 15, 2008.
If
your
Notes are held by a broker, dealer, commercial bank, trust company or other
nominee, you must contact such nominee if you desire to tender your Notes
and
instruct such nominee to tender the Notes on your behalf through the transmittal
procedures of DTC on or before the expiration time.
By
tendering your Notes through the transmittal procedures of DTC, you agree
to be
bound by the terms of the Offer. See “Procedures for Tendering
Notes.”
Until
what time can I withdraw
previously tendered Notes?
You
can
withdraw previously tendered Notes at any time until the expiration time,
5:00
p.m., New York City time, on February 15, 2008 unless we extend the Offer,
in
which case you may withdraw your Notes at any time prior to the new expiration
time. You may also withdraw any tendered Notes if such Notes have not
been accepted for payment after the expiration of 40 business days from the
commencement of the Offer. See “Withdrawal of Tenders.”
How
do I withdraw previously tendered
Notes?
To
withdraw Notes validly tendered in the Offer, you must withdraw the Notes
through the procedures of DTC prior to the expiration time. You may not rescind
a withdrawal of tendered Notes. However, you may re-tender your Notes
by following the proper tender procedures. See “Procedures for
Tendering Notes” and “Withdrawal of Tenders.”
If
I tender, when will I receive
payment for the Notes?
We
will
accept for payment Notes validly tendered prior to the expiration of the
Offer
and not validly withdrawn subject to the conditions of the
Offer. Promptly after the expiration time, we will pay the purchase
price for all Notes validly tendered and not withdrawn under the
Offer. See “Terms of the Offer.”
If
my Notes are purchased in the
Offer, when will interest cease to accrue on them?
Unless
we
default in making payment of the purchase price, interest on the Notes we
purchase from you will cease to accrue as of the end of the day on the day
preceding the Designated Event Repurchase Date.
If
I choose to tender Notes in the
Offer, do I have to surrender all of my Notes?
No.
You
may tender all, a portion of or none of your Notes in the Offer. If
you wish to tender a portion of your Notes in the Offer, however, you must
tender your Notes in denominations of $1,000 principal amount or an integral
multiple thereof.
What
will happen to Notes not
tendered in the Offer?
Any
Notes
that remain outstanding after the Designated Event Repurchase Date will continue
to be our obligations and will enjoy the benefits of the Indenture, including
the accrual of interest. You will have the right to convert the Notes
in the future only on the terms and subject to the conditions of the
Indenture. The amount and kind of securities and cash to be received
upon conversion changed following the consummation of the Merger in accordance
with the Indenture and as described in this Offer to Purchase. The other
terms
and conditions governing the Notes, including the covenants and other protective
provisions contained in the Indenture governing the Notes, will remain
unchanged.
To
the
extent that Notes are purchased pursuant to this Offer to Purchase, the trading
markets for the Notes that remain outstanding may be more limited than the
trading markets that may have existed if all Notes remained
outstanding. As a result, the market price for the remaining Notes
may decrease or become more volatile.
Whether
or not any Notes are purchased by us pursuant to the Offer, we or any of
our
affiliates, from time to time at any time beginning after the tenth business
day
following the expiration of the Offer, may acquire Notes otherwise than pursuant
to the Offer, through various means upon such terms and at prices that may
be
higher or lower than the prices to be paid pursuant to this Offer to Purchase,
and for cash or other consideration.
Do
I have to pay a commission if I
tender my Notes?
No
commissions are payable by Holders of the Notes to the Company, DTC or the
paying agent; however, you may be required to pay commissions to your broker
in
connection with your tender of Notes. See “Terms of the
Offer.”
What
are the material federal income
tax consequences to me if I tender?
The
sale
of Notes pursuant to the Offer will be a taxable event for U.S. federal income
tax purposes. See “United States Federal Income Tax Consequences.”
We recommend that you consult
your tax advisor regarding the application of the U.S. federal tax laws to
your
particular situation, as well as any tax consequences arising under any state,
local or foreign tax law.
Who
can I talk to if I have questions
about the Offer?
You
may
contact Georgeson which is the Information Agent for the Offer, at (877)
386-8141 or at the address listed on the back cover of this Offer to Purchase
if
you have any questions or requests for assistance. (Brokers, dealers,
commercial banks, trust companies or other nominees can contact Georgeson
at
(212) 440-9800).
Are
you making any recommendation
about the Offer?
The
Company does not make any recommendation as to whether you should surrender
your
Notes for purchase in the Offer. You must make your own decision whether
to
surrender your Notes for purchase in the Offer and, if so, the amount of
Notes
to surrender.
This
Offer to Purchase contains
important information and you should read the remainder of this document
in its
entirety before making a decision with respect to the Offer.
AVAILABLE
INFORMATION
CommScope
files, and, prior to its acquisition by CommScope, the Company filed, annual,
quarterly and special reports, proxy statements, and other documents with
the
SEC under the Exchange Act. These documents are available to the
public at the SEC’s website at http://www.sec.gov and CommScope’s SEC filings
are available to the public at CommScope’s website at
http://www.commscope.com. You may also read and copy any document
CommScope or the Company files at the SEC’s Public Reference Room located
at:
Headquarters
Office
100
F
Street, N.E.
Room
1580
Washington,
DC 20549
(202)
551- 8090
You
may
obtain information regarding the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330 (1-800-732-0330).
INCORPORATION
BY
REFERENCE
We
incorporate by reference specified information that CommScope and the Company
have filed with the SEC, which means that we can disclose important information
to you by referring you to those documents. The information
incorporated by reference is an important part of this Offer to
Purchase. Any statement contained in a document incorporated by
reference shall be deemed to be modified or superseded for purposes of this
Offer to Purchase to the extent that a statement contained in this Offer
to
Purchase modifies or replaces that statement. We incorporate by
reference the documents of CommScope and the Company listed below (including
all
exhibits thereto, in each case, as applicable).
(i) The
section titled “Description of the Notes” in Amendment No. 1 to the Company’s
Registration Statement on Form S-4 filed on June 10, 2003;
(ii) The
Company’s Annual Report on Form 10-K for the year ended September 30,
2007;
(iii) The
Company’s Quarterly Reports on Form 10-Q for the quarters ended December 31,
2006, March 31, 2007 and June 30, 2007;
(iv) The
Company’s Current Reports on Form 8-K Filed on October 19, 2006, November 6,
2006, February 9, 2007, May 16, 2007, June 6, 2007, June 27, 2007, July 17,
2007, July 18, 2007, July 31, 2007 (SEC Accession No. 00011193125-07-166356),
July 31, 2007 (SEC Accession No. 0001104659-07-057243) (other than the
information furnished under Item 2.01 and the press release attached as exhibit
99.1), August 16, 2007, September 18, 2007 (as amended by the Current Report
on
Form 8-K/A filed with the SEC on September 19, 2007), October 24, 2007, October
31, 2007 (other than the information furnished under Item 2.02 and the press
release attached as exhibit 99.1), November 8, 2007, December 11, 2007, and
December 27, 2007; and
(v) CommScope’s
Annual Report on Form 10-K for the year ended December 31, 2006;
(vi) CommScope’s
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007, June
30,
2007, and September 30, 2007; and
(vii) CommScope’s
Current Reports on Form 8-K filed on February 23, 2007, February 28, 2007,
March
19, 2007, March 22, 2007, May 1, 2007, June 27, 2007 (other than the information
furnished under Item 7.01 and the press release attached as exhibit 99.2),
August 16, 2007, October 30, 2007, December 4, 2007, December 4, 2007, December
6, 2007, December 26, 2007, December 28, 2007, January 4, 2008 and January
10,
2008.
In
addition, this Offer to Purchase constitutes a part of an Issuer Tender Offer
filed on Schedule TO (the “Schedule TO”) by the Company with the SEC on January
10, 2008 pursuant to Section 13(e) of the Exchange Act and the rules and
regulations promulgated thereunder. The Schedule TO and all exhibits
thereto are incorporated in this Offer to Purchase by reference.
You
may
request a free copy of these filings by writing to the following
address:
CommScope
Inc.
1100
CommScope Place, SE
P.O.
Box
339
Hickory,
North Carolina 28602
Attention:
Corporate Secretary
In
addition, you may obtain copies of the information relating to CommScope,
without charge, by accessing CommScope’s website at http://www.commscope.com
under the tab “Investor Relations” and then under the tab “SEC Filings.” The
information contained in CommScope’s website is not incorporated by reference
into this Offer to Purchase.
NOTE
REGARDING FORWARD-LOOKING
STATEMENTS
Certain
statements in this Offer to Purchase and the documents that we incorporate
by
reference that are other than historical facts are intended to be
“forward-looking statements” within the meaning of the Securities Exchange Act
of 1934, the Private Securities Litigation Reform Act of 1995 and other related
laws and include but are not limited to those statements relating to CommScope’s
business position, plans, outlook, revenues, earnings, margins, synergies
and
other financial items, restructuring plans, CommScope’s acquisition of the
Company, sales and earnings expectations, expected demand, cost and availability
of key raw materials, internal and external production capacity and expansion,
competitive pricing and relative market position. While we believe such
statements are reasonable, the actual results and effects could differ
materially from those currently anticipated. These forward-looking statements
are identified by the use of certain terms and phrases including but not
limited
to “intent,” “goal,” “estimate,” “expect,” “project,” “projections,” “plans,”
anticipate,” “should,” “designed to,” “foreseeable future,” “believe,” “think,”
“scheduled,” “outlook,” “guidance,” and similar expressions.
Forward-looking
statements are not a guarantee of performance and are subject to a number
of
risks and uncertainties, many of which are difficult to predict and are beyond
our control. These risks and uncertainties could cause actual results to
differ
materially from those expressed in or implied by the forward-looking statements,
and therefore should be carefully considered. Relevant risks and uncertainties
relating to CommScope’s acquisition of the Company include, but are not limited
to: the anticipated benefits and synergies of the transaction may not be
realized; the integration of the Company’s operations with CommScope could be
materially delayed or may be more costly or difficult than expected; and
legal
proceedings may be commenced by or against CommScope or the Company. Relevant
risks and uncertainties generally applicable to CommScope include, but are
not
limited to: changes in cost and availability of key raw materials and the
ability to recover these costs from customers through pricing actions;
concentration of sales among a limited number of key customers or distributors;
customer demand for our products and the ability to maintain existing business
alliances with key customers or distributors; the risk that internal production
capacity and that of contract manufacturers may be insufficient to meet customer
demand for products; the risk that customers might cancel orders placed or
that
orders currently placed may reduce orders in the future; continuing
consolidation among customers; competitive pricing and acceptance of products;
industry competition and the ability to retain customers through product
innovation; possible production disruption due to supplier or contract
manufacturer bankruptcy, reorganization or restructuring; successful ongoing
operation of our vertical integration activities; ability to achieve expected
sales, growth and earnings goals; costs of protecting or defending CommScope’s
intellectual property; ability to obtain capital on commercially reasonable
terms; and regulatory changes affecting CommScope or the industries CommScope
serves. For a more complete description of factors that could cause such
a
difference, please see CommScope’s filings with the SEC. The information
contained in this Offer to Purchase and the documents incorporated by reference
represent the Company’s best judgment at the respective dates thereof based on
information available as of such dates. In providing forward-looking statements,
the Company and CommScope do not intend and do not undertake any duty or
obligation to update these statements as a result of new information, future
events or otherwise.
THE
OFFER
Introduction.
Upon
the
terms and subject to the conditions set forth in this Offer to Purchase,
we are
offering to purchase any or all of our outstanding 3¼% Convertible Subordinated
Notes due 2013 at a price in cash equal to 100% of the principal amount of
the
Notes. On February 15, 2008, the Company will make a semi-annual
interest payment on the Notes to holders of record as of February 1,
2008. As of January 9, 2008 there was $164,411,000 in aggregate
principal amount of Notes outstanding.
This
Notice of Designated Event and Offer to Purchase is being sent to you pursuant
to the Indenture and constitutes a “Designated Event Notice” referenced in
Section 14.05 thereof and a notice of execution of a supplemental indenture
referenced in Section 9.01 thereof. The Indenture provides that
following a Designated Event (as defined in the Indenture), each Holder of
the
Notes will have the right to have all of its Notes, or any portion of the
principal amount thereof that is an integral multiple of $1,000, repurchased
at
a price determined as set forth in the Indenture. A Designated Event
occurred on December 27, 2007 as a result of the merger of a indirect
wholly-owned subsidiary of CommScope with and into the Company whereby the
Company became an indirect wholly-owned subsidiary of CommScope. We
entered into the Supplemental Indenture with the Trustee on December 27,
2007.
The
Offer
will expire at the expiration time, which is 5:00 p.m., New York City time,
on
February 15, 2008 and we will purchase on February 15, 2008 any Notes that
have
been validly tendered and not withdrawn, unless the Offer is extended or
earlier
terminated. If Notes are accepted for payment pursuant to the Offer,
only Holders of Notes who validly tender their Notes pursuant to the Offer
at or
prior to the expiration time will receive the purchase price. Notes
tendered in the Offer may be withdrawn at any time prior to the expiration
time.
In
the
Merger, each outstanding share of common stock of the Company was converted
into
the right to receive $13.50 in cash and 0.031543 shares of CommScope Common
Stock. As a result of the Merger, each $1,000 principal amount of the
Notes is convertible until the Designated Event Repurchase Date at the option
of
the Holder on the terms and subject to the conditions of the Indenture into
$986.15 in cash and 2.304159 shares of CommScope Common Stock (subject to
adjustment from time to time and payments for fractional shares, as provided
in
the Indenture).
Fractional
shares of CommScope Common Stock will not be issued upon conversion of the
Notes. Instead, CommScope will pay cash for any shares of fractional CommScope
Common Stock Holders would otherwise have received. Holders should read
“Conversion Rights with Respect to the Notes” for more information about the
Notes’ conversion rights. Holders who validly tender and do not properly
withdraw their Notes in the Offer will no longer have conversion rights,
unless
we fail to purchase and pay for such Notes pursuant to the Offer.
Based
on
the current conversion rate and a closing price of CommScope Common Stock
on the
NYSE of $42.37 on January 9, 2008, a Holder that tendered its Notes for
conversion on such date would be entitled to conversion consideration with
a
value of approximately $1,083.78 for
each
$1,000 principal amount of Notes so tendered.
The purchase price that we are offering per $1,000 principal amount of Notes
is
less than this hypothetical conversion value. The actual value of the conversion
consideration that a particular Holder would be entitled to receive pursuant
to
the Indenture and the Notes upon conversion of such Notes, however, varies
based
upon the value of CommScope Common Stock when the Notes are tendered for
conversion. There can be no assurance as to the price at which
CommScope Common Stock may now or in the future trade or be sold, and no
assurance as to whether a Holder will receive an amount greater than, less
than,
or equal to the hypothetical conversion value set forth above upon
conversion.
Holders
of Notes are urged to consult with their own financial advisors before accepting
the Offer.
We
do not make, and none of our
directors or affiliates makes, any recommendation as to whether Holders should
tender their Notes pursuant to the Offer.
Terms
of the
Offer.
Upon
the
terms and subject to the conditions set forth herein, we are offering to
purchase for cash any and all of the outstanding Notes at a price equal to
100%
of the principal amount of the Notes. On February 15, 2008, the
Company will make a semi-annual interest payment on the Notes to holders
of
record as of February 1, 2008.
The
Offer
will expire at the expiration time, which is 5:00 p.m., New York City time,
on
February 15, 2008. If Notes are accepted for payment pursuant to the Offer,
only
Holders of Notes who validly tender their Notes pursuant to the Offer at
or
prior to the expiration time will receive the purchase price. Notes
tendered in the Offer may be withdrawn at any time prior to such date and
time.
If
we
make a material change in the terms of the Offer or the information concerning
the Offer, we will disseminate additional Offer materials and extend the
Offer
if required by law.
Subject
to applicable securities laws and the terms set forth in the Indenture and
this
Offer to Purchase, we reserve the right to amend the Offer in any
respect. In addition, we can extend or terminate the Offer if such
extension or termination is required by applicable law. Any
extension, amendment or termination of the Offer will be followed as promptly
as
practicable by public announcement thereof, the announcement in the case
of an
extension of the Offer to be issued no later than 9:00 a.m., New York City
time,
on the next business day after the previously scheduled expiration
time. See “Expiration, Extension, Amendment, Termination or
Withdrawal of the Offer.”
In
the
event that we withdraw or terminate the Offer because either or both of the
conditions to the Offer described in “Conditions of the Offer” have not been
satisfied, the purchase price will not be paid or become payable to Holders
who
have tendered their Notes. In such event, the paying agent will
return tendered Notes to the tendering Holders promptly following the withdrawal
or termination of the Offer.
You
will
not be required to pay any commission to us, DTC or the paying agent in
connection with the Offer; however, there may be commissions you need to
pay to
your broker in connection with your tender of Notes.
You
may
tender, and we will only accept, Notes in denominations of $1,000 principal
amount and integral multiples thereof. We will accept for payment,
upon the terms and subject to the conditions of the Offer, all Notes validly
tendered in accordance with the procedures set forth in “Procedures for
Tendering Notes” and not withdrawn in accordance with the procedures set forth
in “Withdrawal of Tenders” at or prior to the expiration time. Each
tendering Holder of Notes whose Notes are accepted for payment pursuant to
the
Offer will receive the same consideration per $1,000 principal amount thereof
as
all other Holders of Notes whose tenders are accepted.
We
and
our affiliates, including our executive officers and directors, will be
prohibited under applicable federal securities laws from repurchasing Notes
outside of the Offer for ten business days after the expiration
time. Following such time, if any Notes remain outstanding, we may
purchase additional Notes in the open market, in private transactions, through
a
subsequent tender offer or otherwise, any of which purchases may be consummated
at a price higher or lower than that offered hereby, or which may be paid
in
cash or other consideration. The decision to purchase additional
Notes, if any, will depend upon many factors, including the market price
of the
Notes, the results of the Offer, the business and financial position of the
Company and CommScope and general economic and market conditions. Any
such purchase may be on the same terms or on terms more or less favorable
to
Holders of the Notes than the terms of the Offer as described in this Offer
to
Purchase.
Certain
Information Concerning the
Offeror.
The
Company, a Delaware corporation, is a wholly-owned indirect subsidiary of
CommScope, a Delaware corporation. We design, manufacture and deliver innovative
and essential equipment and solutions for the global communications
infrastructure market. We serve operators and original equipment manufacturers
from facilities in 35 countries.
Our
principal executive office and telephone number are: 1100 CommScope Place,
SE,
P.O. Box 339 Hickory, North Carolina 28602, (828) 324-2200.
Purpose
of the
Offer.
Section
14.05 of the Indenture provides that following a Designated Event, the Company
is obligated to offer to repurchase your Notes. A Designated Event,
as defined in the Indenture, occurred when an indirect wholly-owned subsidiary
of CommScope merged with and into the Company and the Company became an indirect
wholly-owned subsidiary of CommScope which resulted in shares of common stock
of
the Company being converted into the right to receive consideration that
was not
all or substantially all common stock of a publicly listed company. We are
making the Offer to satisfy our obligations under the Indenture.
Price
Range of Notes and Common
Stock; Dividends.
There
is
no established reporting system or trading market for trading in the Notes;
however, we believe the Notes currently are traded over-the-counter.
Accordingly, there is no practical
way
to determine the trading history of the
Notes. We believe that trading in the Notes has been limited and
sporadic. To the extent such information is available, Holders are
urged to contact their brokers with respect to current information regarding
the
market price of the Notes.
Following
the consummation of the Offer, we expect that Notes not purchased in the
Offer
will continue to be traded over-the-counter; however, we anticipate that
the
trading market for the Notes might be even more limited. A debt security
with a
smaller outstanding principal amount available for trading (a smaller “float”)
may command a lower price and trade with greater volatility than would a
comparable debt security with a greater float. Consequently, our
purchase of Notes pursuant to the Offer will reduce the float and may negatively
impact the liquidity, market value and price volatility of the Notes that
remain
outstanding following the Offer. We cannot assure you that a trading
market will exist for the Notes following the Offer. The extent of
the market for the Notes following consummation of the Offer will depend
upon,
among other things, the remaining outstanding principal amount of the Notes
at
such time, the number of Holders of Notes remaining at such time and the
interest in maintaining a market in such Notes on the part of securities
firms.
The
CommScope Common Stock is currently quoted on the NYSE under the symbol
“CTV.” The following table sets forth, for each period indicated, the
high and low sale prices for CommScope Common Stock as reported on the
NYSE.
| |
|
CommScope
Common
Stock
Price
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Fiscal
Year Ended December 31,
2005
|
|
|
|
|
|
|
|
Quarter
ended March 31, 2005
|
|
$ |
19.23
|
|
|
$ |
13.93
|
|
|
Quarter
ended June 30, 2005
|
|
|
18.17
|
|
|
|
13.83
|
|
|
Quarter
ended September 30, 2005
|
|
|
19.73
|
|
|
|
16.87
|
|
|
Quarter
ended December 31, 2005
|
|
|
21.13
|
|
|
|
16.38
|
|
| |
|
|
|
|
|
|
|
|
|
Fiscal
Year Ended December 31,
2006
|
|
|
|
|
|
|
|
|
|
Quarter
ended March 31, 2006
|
|
$ |
29.42
|
|
|
$ |
19.95
|
|
|
Quarter
ended June 30, 2006
|
|
|
33.72
|
|
|
|
25.92
|
|
|
Quarter
ended September 30, 2006
|
|
|
33.67
|
|
|
|
25.74
|
|
|
Quarter
ended December 31, 2006
|
|
|
35.91
|
|
|
|
29.25
|
|
| |
|
|
|
|
|
|
|
|
|
Fiscal
Year Ended December 31,
2007
|
|
|
|
|
|
|
|
|
|
Quarter
ended March 31, 2007
|
|
$ |
43.79
|
|
|
$ |
28.28
|
|
|
Quarter
ended June 30, 2007
|
|
|
59.82
|
|
|
|
41.90
|
|
|
Quarter
ended September 30, 2007
|
|
|
63.51
|
|
|
|
44.28
|
|
|
Quarter
ended December 31, 2007
|
|
|
54.13
|
|
|
|
37.21
|
|
| |
|
|
|
|
|
|
|
|
|
Fiscal
Year Ending December 31,
2008
|
|
|
|
|
|
|
|
|
|
Quarter
ending March 31, 2008 (through January 9, 2008)
|
|
$ |
49.90
|
|
|
$ |
40.52
|
|
_________
On
January 9, 2008 the closing price of CommScope Common Stock on the NYSE was
$42.37. CommScope has never declared or paid cash dividends on
CommScope Common Stock.
We
urge you to obtain current market
quotations for the Notes, to the extent available, and CommScope Common Stock
prior to making any decision with respect to the Offer.
Conversion
Rights with Respect to the
Notes.
In
the
Merger, each outstanding share of the Company’s common stock was converted into
the right to receive $13.50 in cash and 0.031543 shares of CommScope Common
Stock. As a result of the Merger, each $1,000 principal amount of the Notes
is
convertible until the Designated Event Repurchase Date at the option of the
Holder, in accordance with and subject to the provisions of the Indenture,
into
$986.15 in cash and 2.304159 shares of CommScope Common Stock (subject to
adjustment from time to time and payments for fractional shares, as provided
in
the Indenture). On January 9, 2008, the closing price of CommScope Common
Stock
on the NYSE was $42.37. Based on the current conversion rate and this price,
a
Holder that tendered its Notes for conversion on such date would be entitled
to
conversion consideration with a value of approximately $1,083.78 per $1,000
principal amount of the Notes. Holders converting Notes will not
receive a cash payment for accrued and unpaid interest, which interest shall
be
deemed to be paid in full through delivery of the conversion consideration;
provided, however,
that if
Notes are converted during the period after a record date for the payment
of
interest but prior to the next succeeding interest payment date, the Company
will pay interest on such interest payment date to the Holder registered
as such
on the applicable record date.
Fractional
shares of CommScope Common Stock will not be issued upon conversion of the
Notes. Instead, CommScope will pay cash for any shares of fractional CommScope
Common Stock Holders would otherwise have received, based on the closing
sale
price of the CommScope Common Stock on the NYSE on the last trading day
immediately preceding the day on which the Notes are deemed to be converted.
Holders who validly tender and do not properly withdraw their Notes in the
Offer
will no longer have conversion rights, unless we fail to purchase and pay
for
such Notes pursuant to the Offer.
In
order
to exercise the conversion privilege with respect to a Note held in book-entry
form, the beneficial owner must (i) cause to be completed the appropriate
instruction form for conversion pursuant to DTC’s book-entry conversion program,
(ii) cause to be delivered by book-entry delivery an interest in the aggregate
principal amount and corresponding principal amount represented thereby to
be
converted of such Note, (iii) furnish appropriate endorsements and transfer
documents if required by the Company or the Trustee or conversion agent,
and
(iv) pay the funds, if any, required by Section 15.02 of the Indenture and
any
transfer or similar taxes, if required pursuant to Section 15.07 of the
Indenture. The Bank of New York Trust Company, N.A is the trustee and
conversion agent for the Notes. See the back cover of this Offer to
Purchase for The Bank of New York Trust Company, N.A’s contact
information.
For
more
information regarding the conversion rights with respect to the Notes, or
any of
the other terms and conditions of the Notes, please see the
Indenture.
Acceptance
of Notes for
Payment.
Upon
the
terms and subject to the conditions of the Offer (including, if the Offer
is
extended or amended, the terms and conditions of any such extension or
amendment) and applicable law, we will, on the Designated Event Repurchase
Date,
purchase by accepting for payment, and will make payment for, all Notes validly
tendered (and not properly withdrawn) pursuant to the Offer. Such
payment will be made by the deposit, on or prior to the Designated Event
Repurchase Date, of immediately available funds with the paying agent, which
will act as agent for tendering Holders for the purpose of receiving payment
from us and transmitting such payment to tendering Holders. Payment
for Notes for which an election to repurchase is validly made shall be delivered
promptly following the later of (i) the expiration time of the Offer or (ii)
the
time of book-entry transfer or delivery of the Note to the paying
agent. Under no circumstances will interest on the purchase price be
paid by us by reason of any delay on behalf of the paying agent in making
such
payment.
We
expressly reserve the right, in our sole discretion and subject to the terms
of
the Indenture and the Notes and Rule 13e-4(f)(5) and Rule 14e-1(c) under
the
Exchange Act, to delay acceptance for payment of the Notes in order to comply,
in whole or in part, with any applicable law. We also expressly
reserve the right, in our sole discretion, to withdraw or terminate the Offer
if
any or all of the conditions specified in the section captioned “Conditions of
the Offer” are not satisfied.
In
all
cases, payment by the paying agent to Holders of Notes accepted for payment
pursuant to the Offer will be made only after timely receipt by the paying
agent
of confirmation of a book-entry transfer of such Notes into the paying agent’s
account at DTC and a properly transmitted agent’s message. See
“Procedures for Tendering Notes.”
For
purposes of the Offer, validly tendered Notes (or defectively tendered Notes
for
which we have waived such defect) will be deemed to have been accepted for
payment by us if, as and when we give oral or written notice of acceptance
for
payment to the paying agent. We reserve the right to transfer or
assign, in whole at any time or in part from time to time, to one or more
of our
affiliates, the right to purchase any Notes tendered pursuant to the Offer,
but
any such transfer or assignment will not relieve us of our obligations under
the
Offer or prejudice the rights of tendering Holders of Notes to receive the
purchase price pursuant to the Offer.
We
will
only accept tenders of Notes pursuant to the Offer in principal amounts equal
to
$1,000 or integral multiples thereof. Notes accepted for payment will
cease to be outstanding and will be delivered to the Trustee for cancellation
immediately after the purchase.
If
we do
not accept tendered Notes for payment for any reason pursuant to the terms
and
conditions of the Offer, such Notes will be credited to an account maintained
at
the book-entry transfer facility designated by the participant therein who
so
delivered such Notes, promptly following the expiration time or the termination
of the Offer.
Expiration,
Extension, Amendment,
Termination or Withdrawal of the Offer.
The
Offer
will expire at the expiration time, which is 5:00 p.m., New York City time,
on
February 15, 2008.
We
expressly reserve the right, at any time or from time to time, subject to
applicable law and the provisions of the Indenture, to amend the Offer in
any
respect by giving oral or written notice of such amendment to the paying
agent.
We
also
expressly reserve the right, in our sole discretion, to extend or terminate
the
Offer in order to comply, in whole or in part, with any applicable law, or
to
withdraw or terminate the Offer if either or both of the conditions specified
in
the section “Conditions of the Offer” are not satisfied.
Any
extension, amendment, termination or withdrawal of the Offer will be followed
as
promptly as practicable by public announcement thereof, the announcement
in the
case of an extension of the Offer to be issued no later than 9:00 a.m., New
York
City time, on the next business day after the previously scheduled expiration
time. Without limiting the manner in which any public announcement
may be made, we shall have no obligation to publish, advertise or otherwise
communicate any such public announcement other than by issuing a press
release.
If
we
make a material change in the terms of the Offer or the information concerning
the Offer, we will disseminate additional Offer materials and extend the
Offer
if required by law.
If
we
extend the Offer, or if, for any reason, the acceptance for payment of, or
the
payment for, Notes is delayed or if we are unable to accept for payment or
pay
for Notes pursuant to the Offer, then, without prejudice to our rights under
the
Offer, the paying agent may retain tendered Notes on our behalf, and such
Notes
may not be withdrawn except to the extent tendering Holders are entitled
to
withdrawal rights as described in “Withdrawal of Tenders.” However, our ability
to delay the payment for Notes that we have accepted for payment is limited
by
Rules 13e-4(f)(5) and 14e-1(c) under the Exchange Act, which require that
a
bidder pay the consideration offered or return the securities deposited by
or on
behalf of Holders of securities promptly after the termination or withdrawal
of
a tender offer.
Any
Notes
received by the paying agent that are not properly tendered and as to which
the
irregularities have not been cured or waived will be returned by the paying
agent to the tendering Holders promptly following the earlier to occur of
the
expiration time or the termination of the Offer.
Procedures
for Tendering
Notes.
You
will
not be entitled to receive the purchase price for your Notes unless you validly
tender and do not withdraw your Notes on or before the expiration time of
the
Offer, which is 5:00 p.m., New York City time, on February 15,
2008. You may tender some or all of your Notes; however, any Notes
tendered must be in $1,000 principal amount or an integral multiple
thereof. If you do not validly tender your Notes on or before the
expiration time, your Notes will remain outstanding subject to the existing
terms of the Indenture and the Notes.
Method
of Tendering
Notes. The Trustee under the Indenture has informed us that,
as of the date of this Offer to Purchase, all custodians and beneficial Holders
of the Notes hold the Notes through DTC accounts and that there are no
certificated Notes in non-global form. Accordingly, all Notes
tendered for purchase hereunder must be delivered through
ATOP. Delivery of Notes and all other required documents, including
delivery and acceptance through ATOP, is at the election and risk of the
person
tendering Notes.
Agreement
to Be Bound by the Terms
of the Offer. By tendering your Notes through ATOP, you
acknowledge and agree as follows:
|
●
|
pursuant
to the Offer, such Notes shall be purchased as of the date the
Notes are
accepted for purchase pursuant to the terms and conditions of the
Indenture and the Notes, and that under the Indenture, Notes must
be
surrendered to the paying agent to collect payment of the purchase
price;
|
|
●
|
you
have received this Offer to Purchase and acknowledge that it provides
the
notices required by the Indenture;
|
|
●
|
upon
the terms and subject to the conditions of the Offer, and effective
upon
the acceptance for payment thereof, you irrevocably surrender,
sell,
assign and transfer to us, all rights, title and interest in and
to all
the Notes tendered and so accepted for payment, waive any and all
rights
with respect to the Notes (including without limitation any existing
or
past defaults and their consequences in respect of the Notes and
the
Indenture), release and discharge us and our affiliates, and our
and their
respective directors, officers and employees, from any and all
claims you
may have now, or may have in the future arising out of, or related
to, the
Notes, including, without limitation, any claims that you are entitled
to
receive additional principal or interest payments with respect
to the
Notes or to participate in any conversion, redemption or defeasance
of the
Notes and irrevocably constitute and appoint the paying agent as
your true
and lawful agent and attorney-in-fact with respect to any such
tendered
Notes, with full power of substitution and resubstitution (such
power of
attorney being deemed to be an irrevocable power coupled with an
interest)
to:
|
|
|
● transfer
ownership of such Notes, on the account books maintained by DTC,
together,
in any such case, with all accompanying evidences of transfer
and
authenticity, to us,
|
|
|
● present
such Notes for transfer on the relevant security register,
and
|
|
|
● receive
all benefits or otherwise exercise all rights of beneficial ownership
of
such Notes (except that the paying agent will have no rights
to, or
control over, funds from us, except as our agent, for the purchase
price
of any tendered Notes that are purchased by us), all in accordance
with
the terms set forth in this Offer to
Purchase; |
|
●
|
you
represent and warrant that you (i) own the Notes tendered and are
entitled
to tender such Notes and (ii) have full power and authority to
tender,
surrender, sell, assign and transfer the Notes tendered and that
when such
Notes are accepted for payment by us, we will acquire good title
thereto,
free and clear of all liens, restrictions, charges and encumbrances
and
not subject to any adverse claim or
right;
|
|
●
|
you
agree, upon request from us, to execute and deliver any additional
documents deemed by the paying agent or us to be necessary or desirable
to
complete the sale, assignment and transfer of the Notes
tendered;
|
|
●
|
you
understand that all Notes properly tendered and not validly withdrawn
prior to expiration time will be purchased at the purchase price,
in cash,
subject to the terms and conditions of the
Offer;
|
|
●
|
Payment
for Notes purchased pursuant to this Offer to Purchase will be
made by
deposit of the purchase price for Notes with the paying agent,
which will
act as your agent for the purpose of receiving payments from us
and
transmitting such payments to you;
|
|
●
|
tenders
for Notes may be withdrawn prior to the expiration time by following
the
procedures described in “Withdrawal of
Tenders”;
|
|
●
|
all
authority conferred or agreed to be conferred pursuant to the terms
of the
Offer hereby shall survive your death or incapacity and shall be
binding
upon your heirs, personal representatives, executors, administrators,
successors, assigns, trustees in bankruptcy and other legal
representatives;
|
|
●
|
the
tender, delivery and surrender of the Notes is not effective, and
the risk
of loss of the Notes does not pass to the paying agent, until receipt
by
the paying agent of any and all evidences of authority and any
other
required documents in form satisfactory to us;
and
|
|
●
|
all
questions as to the validity, form, eligibility (including time
of
receipt) and acceptance for payment of any Notes pursuant to the
procedures described in this Offer to Purchase and the form and
validity
(including time of receipt of notices of withdrawal) of all documents
will
be determined by us, in our sole direction, which determination
shall be
final and binding on all parties.
|
Tender
of Notes Held Through a
Custodian. If your Notes are held by a broker, dealer,
commercial bank, trust company or other nominee, you must contact such nominee
if you desire to tender your Notes and instruct such nominee to tender your
Notes for purchase on your behalf through the transmittal procedures of DTC
as
set forth below under the caption “—Tender of Notes in Global Form” on or prior
to the expiration time.
Tender
of Notes in Global
Form. If you are a DTC participant, you may elect to tender to
us your beneficial interest in the Notes by:
|
●
|
delivering
to the paying agent’s account at DTC through DTC’s book-entry system your
beneficial interest in the Notes on or prior to the expiration
time;
and
|
|
●
|
electronically
transmitting your acceptance of the Offer through ATOP, subject
to the
terms and procedures of that system, on or prior to expiration
time. Upon receipt of such Holder’s acceptance through ATOP,
DTC will edit and verify the acceptance and send an agent’s message to the
paying agent for its acceptance. The term “agent’s message”
means a message transmitted by DTC to, and received by, the paying
agent,
which states that DTC has received an express acknowledgment from
the
participant in DTC
|
|
|
described
in that agent’s message, stating the principal amount of Notes that have
been tendered by such participant under the Offer and that
such
participant has received and agrees to be bound by the terms
of the Offer,
including those set forth above under the caption “—Agreement to Be Bound
by the Terms of the
Offer.”
|
Withdrawal
of
Tenders.
You
may
withdraw your tendered Notes at any time prior to the expiration time but
not
thereafter, except as set forth below. In addition, you may withdraw
tendered Notes if we terminate the Offer without purchasing any
Notes. If we terminate the Offer or do not purchase any Notes in the
Offer, we will instruct the paying agent to return your tendered Notes to
you
promptly following the earlier of such termination or the expiration time,
without cost or expense to you. You may also withdraw tendered Notes
if we have not yet accepted them for payment after the expiration of 40 business
days from the date of this Offer to Purchase.
If,
for
any reason whatsoever, acceptance for payment of, or payment for, any Notes
tendered pursuant to the Offer is delayed (whether before or after our
acceptance for payment of Notes) or we are unable to accept for payment or
pay
for the Notes tendered pursuant to the Offer, we may (without prejudice to
our
rights set forth herein) instruct the paying agent to retain tendered Notes
(subject to the right of withdrawal in certain circumstances and subject
to
Rules 13e-4(f)(5) and 14e-1(c) under the Exchange Act, which requires that
an
offeror pay the consideration offered or return the securities deposited
by or
on behalf of the investor promptly after the termination or withdrawal of
a
tender offer).
For
a
withdrawal of a tender of Notes to be effective, a “request message” as defined
below must be received by the paying agent prior to the expiration time,
or
after such time, so long as the Notes have not already been accepted for
payment
by us. DTC participants may electronically transmit a request for
withdrawal to DTC. DTC may then, if required, edit the request and
send a request message to the paying agent. The term “request
message” means a message transmitted by DTC and received by the paying agent,
which states that DTC has received a request for withdrawal from a DTC
participant and identifies the Notes to which such request relates.
If
the
Notes to be withdrawn have been delivered or otherwise identified to the
paying
agent, a request message is effective immediately upon receipt
thereof. If Notes have been delivered under the procedures for
book-entry transfer, any notice of withdrawal must specify the name and number
of the account of the appropriate book-entry transfer facility to be credited
with the withdrawn Notes and must otherwise comply with that book-entry transfer
facility’s procedures.
Any
Notes
properly withdrawn will be deemed to be not validly tendered for purposes
of the
Offer and we will not pay any consideration in respect of Notes that are
so
withdrawn.
Any
permitted withdrawal of Notes may not be rescinded; provided, however, that
withdrawn Notes may be re-tendered by following one of the procedures described
in “Procedures for Tendering Notes,” at any time at or prior to the expiration
time.
Withdrawal
of Notes can be accomplished only in accordance with the foregoing
procedures.
If
you
tender your Notes in the Offer, you may convert your Notes into CommScope
Common
Stock and cash only if you withdraw your Notes prior to the time at which
your
right to withdraw has expired. The Notes are convertible into shares
of common stock and cash as described in “Conversion Rights With Respect to the
Notes.”
All
questions as to the form and validity (including time of receipt) of notices
of
withdrawal, including a request message, will be determined by us, in our
sole
discretion (and our determination shall be final and
binding). Neither we, the paying agent, the Trustee nor any other
person will be under any duty to give notification of any defects or
irregularities in any request message or incur any liability for failure
to give
any such notification.
Source
and Amount of
Funds.
The
total
amount of funds we need to purchase all of the Notes pursuant to the Offer,
to
pay accrued interest, and to pay related fees and expenses is estimated to
be
approximately $167,132,700 (assuming 100% of the outstanding Notes are tendered
and accepted for payment). We intend to fund our purchase of the
Notes from cash advanced by CommScope, which will utilize its available cash
on
hand, and through borrowings under CommScope’s existing credit
agreement.
On
December 27, 2007, CommScope entered into a Credit Agreement, dated as of
December 27, 2007 (the “Senior Credit Agreement”), among CommScope, the lenders
named therein, and Bank of America, N.A., as Administrative Agent, Swing
Line
Lender and L/C Issuer. The Senior Credit Agreement provides for an
aggregate of up to $2,500,000,000 in senior secured credit facilities (the
“Senior Credit Facilities”), consisting of a $750,000,000 term loan A facility,
a $1,350,000,000 term loan B facility and a $400,000,000 revolving credit
facility. The proceeds from the borrowing of the term loan A facility
and the term loan B facility were used, together with cash on hand, to finance
the cash portion of the consideration for CommScope’s acquisition of the
Company, to repay certain existing indebtedness of CommScope and the Company,
and to pay transaction fees and expenses. The Senior Credit Facilities are
guaranteed by CommScope’s domestic subsidiaries (other than certain inactive
domestic subsidiaries) and are secured by substantially all the assets of
CommScope and the guarantor subsidiaries, including all of the capital stock
of
the guarantor subsidiaries and up to 66% of the capital stock of certain
of
CommScope’s foreign subsidiaries.
The
term
loan A facility was drawn in full at closing and is required to be repaid
by
CommScope in consecutive quarterly installments of $9,375,000 from March
31,
2010 to December 31, 2010, $18,750,000 from March 31, 2011 to December 31,
2011,
$56,250,000 from March 31, 2012 to December 31, 2012, and $103,125,000 on
each
quarterly payment date thereafter with a final payment of all outstanding
principal and interest on December 27, 2013. The term loan B facility
was drawn in full at closing and is required to be repaid by CommScope in
consecutive quarterly installments of $3,375,000 beginning March 31, 2008
and on
each quarterly payment date thereafter with a final payment of all outstanding
principal and interest on December 27, 2014. Borrowings under the
revolving credit facility may be used for working capital and other general
corporate purposes and are required to be repaid in full on December 27,
2013. At December 27, 2007, upon completion of the acquisition of
Andrew, CommScope had $400,000,000 of availability under the revolving credit
facility.
Outstanding
principal under the term loan B facility bears interest at a rate equal to,
at
CommScope’s option, either (1) the base rate (which is the higher of
the then current Federal Funds rate plus 0.5% or the prime rate most recently
announced by Bank of America, N.A., the administrative agent under the Senior
Credit Facilities) plus a margin of 1.50% or (2) the adjusted one, two, three
or
six-month Eurodollar rate plus a margin of 2.50%. Outstanding
principal under the term loan A facility and the revolving credit facility
initially bears interest at a rate equal to, at CommScope’s option, either (1)
the base rate plus a margin of 1.25%, or (2) the adjusted one, two, three
or
six-month Eurodollar rate plus a margin of 2.25%. The undrawn portion
of the revolving credit facility is subject to an unused line fee calculated
initially at an annual rate of 0.50%. Beginning with reference to the
four-quarter period ending March 31, 2008, pricing under the term loan A
facility and the revolving credit facility and the unused line fee for the
revolving credit facility will be determined by reference to a pricing grid
based on CommScope’s consolidated leverage ratio for the four-quarter period
then most recently ended. Under the pricing grid, the applicable
margins for the term loan A facility and the revolving credit facility will
range from 0.75% to 1.25% for base rate loans and from 1.75% to 2.25% for
Eurodollar loans, and the unused line fee for the revolving credit facility
will
range from 0.375% to 0.50%. Outstanding letters of credit are subject
to an annual fee equal to the applicable margin for Eurodollar loans under
the
revolving credit facility as in effect from time to time, plus a fronting
fee on
the undrawn amount thereof at an annual rate of 0.25%.
The
term
loan A facility and the revolving credit facility may be prepaid at any time
without premium. The term loan B facility may be prepaid at any time
without premium, except that if CommScope completes either a repricing amendment
of the term loan B facility or prepays any portion of the term loan B facility
with the proceeds of new secured term loans, in either case during the first
year of the term loan B facility, and such amendment or prepayment results
in
lower pricing for the term loan B facility (or for the replacement loans,
in the
case of a prepayment) than the term loan B pricing then in effect, then
CommScope must pay a premium of 1.0% on the aggregate amount of the term
loan B
facility outstanding immediately prior to such amendment (or 1.0% on the
aggregate amount of the term loan B facility so prepaid, in the case of a
prepayment). The Senior Credit Facilities are subject to mandatory
prepayment with specified percentages of the net cash proceeds of certain
asset
dispositions, casualty events, and debt and equity issuances and with excess
cash flow, in each case subject to certain conditions.
The
Senior Credit Facilities contain covenants that restrict, among other things,
the ability of CommScope and its subsidiaries to create liens, incur
indebtedness and guarantees, make certain investments or acquisitions, merge
or
consolidate, dispose of assets, pay dividends, repurchase or redeem capital
stock and subordinated indebtedness, change the nature of their business,
enter
into certain transactions with affiliates, and make changes in accounting
policies or practices except as required by generally accepted accounting
principles. The Senior Credit Facilities also contain a consolidated
interest coverage ratio covenant, a consolidated leverage ratio covenant
and
limitations on annual capital expenditures. The Senior Credit
Facilities contain events of default including, but not limited to, nonpayment
of principal or interest, violation of covenants, breaches of representations
and warranties, cross-default to other indebtedness, bankruptcy and other
insolvency events, material judgments, certain ERISA events, actual or asserted
invalidity of loan documentation and certain changes of control of
CommScope.
CommScope
may request additional term loans or an increase to the revolving credit
facility, in an aggregate amount of up to $50,000,000, subject to certain
conditions and the receipt of commitments from existing or additional
lenders.
Effective
December 27, 2007, CommScope entered into an interest rate swap agreement
(the
“Swap Agreement”) with Calyon in order to mitigate its variable rate interest
risk on a portion of the term loans under the Senior Credit
Facilities. The Swap Agreement has an initial notional amount of
$1,500,000,000 and is scheduled to decline to $400,000,000 over a four-year
period ending December 31, 2011. Under the Swap Agreement, CommScope
has agreed to pay a fixed interest rate of 4.0775% on the applicable notional
amount through December 31, 2011 and will receive interest payments at a
variable rate based on three-month LIBOR on the applicable notional amount
through the same period. Net payments will be made or received
quarterly.
Conditions
of the
Offer.
There
are
no conditions to the Offer except (i) for the timely and proper delivery
and
tender of the Notes in accordance with the terms of the Offer and (ii) that
the
Offer must comply with applicable law. We reserve the right to
withdraw or terminate the Offer in our sole discretion if either or both
of such
conditions have not been satisfied. The Offer is not conditioned on
our ability to obtain sufficient financing to purchase the Notes.
Plans
and Proposals of the
Company.
Except
as described in these materials
or as previously publicly announced, the Company currently has no agreements
and
has not authorized any actions that would be material to a Holder’s decision to
surrender Notes for purchase in the Offer, which relate to or which would
result
in:
|
●
|
any
extraordinary transaction, such as a merger, reorganization or
liquidation, involving the Company or any of its subsidiaries other
than
those which have already been implemented in connection with the
Merger;
|
|
●
|
any
purchase, sale or transfer of a material amount of the Company’s assets or
any of its significant
subsidiaries;
|
|
●
|
other
than as previously changed in connection with the Merger, any change
in
the Company’s present board of directors or management, including, but not
limited to, any plans or proposals to change the number or the
term of
directors or to fill any existing vacancies on the board or to
change any
material term of the employment contract of any executive
officer;
|
|
●
|
any
other material change in the Company’s corporate structure or
business;
|
|
●
|
any
class of the Company’s equity securities, all of which were de-listed in
connection with the Merger, to be de-listed from a national securities
exchange or to cease to be authorized to be quoted in an automated
quotations system operated by a national securities
association;
|
|
●
|
any
class of the Company’s equity securities becoming eligible for termination
of registration under Section 12(g)(4) of the Exchange Act other
than the
Company’s common stock and the
Notes;
|
|
●
|
the
suspension of the Company’s obligation to file reports under Section 15(d)
of the Exchange Act, which the Company previously suspended in
connection
with the Merger;
|
|
●
|
the
acquisition by any person of additional securities of the Company,
or the
disposition of the Company’s securities;
or
|
|
●
|
any
changes in the Company’s charter, bylaws or other governing instruments,
or other actions that could impede the acquisition of control of
the
Company.
|
United
States Federal Income Tax
Consequences.
The
following is a summary of certain U.S. federal income tax consequences to
Holders of Notes in connection with the Offer described in this Offer to
Purchase. This discussion is not a complete analysis of all potential
U.S. federal income tax consequences, nor does it address any tax consequences
arising under any state, local or foreign tax law. This discussion is
based on the Internal Revenue Code of 1986, as amended, Treasury Regulations
promulgated thereunder, judicial decisions, and published rulings and
administrative pronouncements of the Internal Revenue Service (the “IRS”), all
as in effect as of the date of this Offer to Purchase. These
authorities may change, possibly retroactively, resulting in U.S. federal
income
tax consequences different from those discussed below. No ruling has
been or will be sought from the IRS with respect to the matters discussed
below,
and there can be no assurance that the IRS will not take a contrary position
regarding the tax consequences relating to the Offer, or that any such contrary
position would not be sustained by a court.
This
discussion is limited to Holders who hold Notes as capital assets within
the
meaning of Code Section 1221 (generally, property held for
investment). This discussion does not address all U.S. federal income
tax considerations that may be relevant to a particular Holder in light of
that
Holder’s particular circumstances. This discussion also does not
consider any specific facts or circumstances that may be relevant to Holders
subject to special rules under the U.S. federal income tax laws, including
certain financial institutions, insurance companies, tax-exempt organizations,
U.S. Holders whose functional currency for U.S. federal income tax purposes
is
not the United States dollar, dealers in securities, persons subject to the
alternative minimum tax, persons who hold Notes or shares of CommScope Common
Stock as part of a hedge, conversion or constructive sale transaction, or
straddle or other integrated or risk reduction transaction, controlled foreign
corporations, passive foreign investment companies, or persons who have ceased
to be U.S. citizens or to be taxed as resident aliens. In addition,
the discussion does not apply to Holders of Notes that are treated as
partnerships for U.S. federal income tax purposes.
We
recommend that you consult your
tax advisor regarding the application of the U.S. federal tax laws to your
particular situation, as well as any tax consequences arising under any state,
local or foreign tax law.
As
used
in this discussion, a U.S. Holder is any beneficial owner of Notes who for
U.S.
federal income tax purposes is or is treated as:
|
●
|
an
individual citizen or resident of the United
States;
|
|
●
|
a
corporation or other entity treated as a corporation for U.S. federal
income tax purposes, created or organized in or under the laws
of the
United States, any state thereof or the District of
Columbia;
|
|
●
|
an
estate the income of which is subject to U.S. federal income tax
regardless of its source; or
|
|
●
|
a
trust if it (1) is subject to the primary supervision of a court
within
the United States and one or more U.S. persons have the authority
to
control all substantial decisions of the trust or (2) has a valid
election
in effect under applicable U.S. Treasury regulations to be treated
as a
U.S. person.
|
A
Non-U.S. Holder is any beneficial owner of Notes who is neither a U.S. Holder
nor a partnership for U.S. federal income tax purposes.
If
a
partnership or other entity taxable as a partnership holds the Notes, the
tax
treatment of a partner generally will depend on the status of the partner
and
the activities of the partnership. Accordingly, partnerships that
hold Notes and partners in such partnerships are urged to consult their tax
advisors as to the potential tax consequences to them in connection with
a
decision of whether to participate in the Offer.
We
believe that we and CommScope are not and have not been U.S. real property
holding corporations within the meaning of Sections 897 and 1445 of the
Code. If, contrary to our belief, we and/or CommScope were U.S. real
property holding corporations, the consequences to Non-U.S. Holders might
be
different in certain respects than those described hereinafter.
Non-Tendering
Holders
A
Holder
who does not tender Notes pursuant to the Offer generally will not recognize
gain or loss for U.S. federal income tax purposes and will maintain the same
adjusted tax basis and holding period for the Notes. If such Holder
subsequently elects to convert such Holder’s Notes into CommScope Common Stock
and cash, such conversion will be a taxable transaction, pursuant to which
such
Holder will recognize income, gain, or loss for tax purposes. The tax
consequences to a Holder of such conversion will depend upon the specific
situation of the Holder, including whether the Holder is a U.S. Holder or
a
Non-U.S. Holder. Accordingly, Holders should consult with their tax
advisors regarding the tax consequences to them of such conversion.
Tendering
U.S.
Holders
In
General. A sale
of Notes by a U.S. Holder pursuant to the Offer will be a taxable transaction
for U.S. federal income tax purposes. Subject to the discussion of
the market discount rules set forth below, a U.S. Holder selling Notes pursuant
to the Offer will recognize capital gain or loss in an amount equal to the
difference between the amount of cash received (other than amounts received
attributable to accrued but unpaid interest, as discussed below) and the
U.S.
Holder’s adjusted tax basis in the Notes sold at the time of sale, and any such
gain or
loss
will be long-term capital gain or loss if the
U.S. Holder held the Notes for longer than one year. A U.S. Holder’s
adjusted tax basis in Notes generally will equal the cost of the Notes to
such
U.S. Holder (increased by the amount of any market discount previously taken
into income by the U.S. Holder, and reduced by the amount of any amortizable
bond premium previously taken into account by the U.S. Holder with respect
to
the Notes). Certain non-corporate U.S. Holders may be eligible for
preferential rates of U.S. federal income tax in respect of long-term capital
gains. The deductibility of capital losses is subject to
limitations.
Any
cash
received attributable to accrued but unpaid interest that has not yet been
included in a U.S. Holder’s income will be taxable as ordinary income and not
included in the amount realized for determining capital gain or loss, as
described above, regardless of whether the U.S. Holder otherwise recognizes
an
overall loss in connection with a sale pursuant to the Offer.
An
exception to the capital gain treatment described above may apply to a U.S.
Holder who purchased Notes at a “market discount.” Subject to a statutory de minimis exception, Notes
have market discount if they were purchased after their original issuance
at an
amount less than their adjusted issue price. In general, unless the
U.S. Holder has elected to include market discount in income currently as
it
accrues, any gain recognized by a U.S. Holder on the sale of Notes having
market
discount (in excess of a de
minimis amount) will be treated as ordinary income to the extent of the
lesser of (i) the gain recognized or (ii) the portion of the market discount
that has accrued (on a straight-line basis or, at the election of the U.S.
Holder, on a constant-yield basis) but has not yet been taken into income
while
such Notes were held by the U.S. Holder. Any gain in excess of such
accrued market discount will be subject to the capital gains rules described
above.
Information
Reporting and Backup
Withholding. Sales of the Notes by U.S. Holders pursuant to
the Offer will be subject to certain information reporting
requirements. In addition, a U.S. Holder who fails to complete an IRS
Form W-9 or applicable substitute form may be subject to backup withholding
at
the applicable rate of 28% with respect to the receipt of consideration received
pursuant to the Offer unless such U.S. Holder (i) is a corporation or comes
within certain other exempt categories and, when required, demonstrates this
fact or (ii) otherwise provides a correct taxpayer identification number,
certifies that it is a U.S. person not currently subject to backup withholding
tax, and otherwise complies with applicable requirements of the backup
withholding rules. Backup withholding is not an additional
tax. Amounts withheld under the backup withholding rules may be
credited against a U.S. Holder’s tax liability, and a U.S. Holder may obtain a
refund of any excess amounts withheld under the backup withholding rules
by
filing the appropriate claim for refund with the IRS in a timely
manner.
Tendering
Non-U.S.
Holders
In
General. A
Non-U.S. Holder will generally not be subject to U.S. federal income tax
on gain
(if any) recognized on a sale of the Notes (other than amounts received
attributable to accrued interest, as discussed below) pursuant to the Offer
unless:
|
●
|
the
gain is effectively connected with the Non-U.S. Holder’s conduct of a
trade or business in the U.S.;
|
|
●
|
the
Non-U.S. Holder is an individual who is present in the U.S. for
183 days
or more in the taxable year of the sale, and certain other conditions
are
met; or
|
|
●
|
we
and/or CommScope are or have been a U.S. real property holding
corporation
for U.S. federal income tax purposes during the shorter of the
non-U.S.
holder’s holding period or the 5-year period ending on the date of
disposition of the Notes.
|
A
Non-U.S. Holder described in the first bullet point above will be required
to
pay U.S. federal income tax on the net gain derived from the sale in the
same
manner as if such Non-U.S. Holder was a U.S. Holder, and if such Holder is
a
foreign corporation, it may also be required to pay an additional branch
profits
tax at a 30% rate (or a lower rate if so specified by an applicable income
tax
treaty). A Holder described in the second bullet point above will be
subject to a 30% (or, if applicable, a lower treaty rate) U.S. federal income
tax on the gain derived from the sale, which may be offset by U.S. source
capital losses, even though the Holder is not considered a resident of the
U.S.
The
gross
amount of cash received by a Non-U.S. Holder upon consummation of the Offer
that
is attributable to accrued interest generally will not be subject to U.S.
federal withholding tax, provided that:
|
●
|
the
Non-U.S. Holder does not actually or constructively own 10% or
more of the
total combined voting power of all classes of CommScope stock that
are
entitled to vote;
|
|
●
|
the
Non-U.S. Holder is not a controlled foreign corporation that is
related to
us through stock ownership;
|
|
●
|
the
Non-U.S. holder is not a bank receiving interest on a loan entered
into in
the ordinary course of business;
and
|
|
●
|
appropriate
documentation (generally, an IRS Form W-8 BEN or applicable substitute
form) establishing that the Non-U.S. Holder is not a U.S. person
is
completed.
|
A
Non-U.S. Holder that does not qualify for an exemption from withholding tax
on
accrued interest under this paragraph will generally be subject to withholding
of U.S. federal income tax at a 30% rate on payments attributable to accrued
interest unless such Non-U.S. Holder is able to claim a valid exemption or
reduction from withholding tax under an income tax treaty and properly executes
an IRS Form W-8 BEN or applicable substitute form. If accrued
interest paid to a Non-U.S. Holder is effectively connected with the conduct
by
that Non-U.S. Holder of a U.S. trade or business, then, although exempt from
U.S. withholding tax if the Non-U.S. Holder provides the appropriate
documentation (generally, an IRS Form W-8 ECI or applicable substitute from),
the Non-U.S. Holder will generally be subject to U.S. federal income tax
on that
accrued interest in the same manner as if the Non-U.S. Holder were a U.S.
Holder. In addition, if the Non-U.S. Holder is a foreign corporation,
the accrued interest may be subject to a branch profits tax at a rate of
30% or
lower applicable treaty rate.
Information
Reporting and Backup
Withholding. A Non-U.S. Holder generally will not be subject
to backup withholding or information reporting on any payments received upon
the
sale of such Holder’s Notes provided that the Non-U.S. Holder properly completes
a W-8 BEN or W-8 ECI, as applicable.
THE
U.S. FEDERAL INCOME TAX
DISCUSSION SET FORTH ABOVE IS INCLUDED FOR GENERAL INFORMATION PURPOSES ONLY.
HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS TO DETERMINE THE FEDERAL, STATE,
LOCAL AND FOREIGN TAX CONSEQUENCES OF THE OFFER TO PURCHASE.
Fees
and Expenses;
Solicitations.
Directors,
officers and regular employees of either the Company or its affiliates (who
will
not be specifically compensated for such services) and the paying agent or
the
information agent may contact Holders of the Notes by mail, telephone, or
facsimile regarding the Offer and may request brokers, dealers, trust companies
and other nominees to forward this Offer to Purchase to beneficial owners
of the
Notes. We will reimburse brokers, dealers, trust companies and other
nominees who forward this Offer to Purchase to beneficial owners of the Notes
for customary mailing and handling expenses incurred by them in forwarding
the
offer materials to their customers.
We
will
pay the paying agent and the information agent reasonable and customary fees
for
their services and reimburse them for their reasonable out-of-pocket expenses
in
connection therewith. We expect that the aggregate fees and expenses
in connection with fees, services and the payment of expenses will not exceed
$25,000. Other than in connection with the foregoing, we will not pay
any fees or commissions to any broker, dealer or other person for soliciting
or
making recommendations with respect to tenders of Notes pursuant to the
Offer.
January
10,
2008 Andrew
Corporation
THE
PAYING AGENT FOR THE OFFER
IS:
THE
BANK OF NEW YORK TRUST COMPANY,
N.A.,
(312)
827-8545
|
To
Contact by Registered or
Certified Mail:
|
To
Contact By Hand or
Overnight Delivery:
|
|
The
Bank of New York Trust Company, N.A.
|
The
Bank of New York Trust Company, N.A.
|
|
2
N. LaSalle Street, Suite 1020
|
2
N. LaSalle Street, Suite 1020
|
|
Chicago,
Illinois 60602
|
Chicago,
Illinois 60602
|
| |
|
Any
requests for assistance or additional copies of this Offer to Purchase and
any
other documents related to the Offer may be directed to the Information Agent
at
the telephone numbers and address set forth below. A Holder may also
contact such Holder’s broker, dealer, commercial bank, trust company or other
nominee for assistance concerning the Offer.
THE
INFORMATION AGENT FOR THE OFFER
IS:
GEORGESON
199
Water
Street, 26th
Floor
New
York,
NY 10038-3560
Banks
and
Brokers Call (212) 440-9800
All
Others Call Toll Free (877) 386-8141