Things are shaping up well here in Nashua, NH this fine Monday morning: the Red Sox are lighting up the World Series, the Pats ground out a gritty gridiron win yesterday, and Light Reading's Ray LeMaistre has drawn up a nifty blog analyzing the Xs and Os of how CommScope was resigned to settle for a reduced IPO price.
"CommScope's revenues were up more than 10 percent compared with the same period a year earlier, so [the company's] expected third-quarter sales represent something of a speed bump for the vendor's growth momentum and investors might have reacted to that shift," charges the piece.
The blog describes how The Carlyle Group LLC had its sights set on a higher [IPO] price than what it actually got. Monday morning quarterbacking alert: "It could be that investors weren't as keen as Carlyle had hoped on a company that's carrying $3 billion in debt," writes Light Reading's LeMaistre. "Hence the need to use the IPO proceeds to reduce that mountain."
However, much as with a certain beloved MLB baseball franchise, the blog goes on to note how CommScope has either a stacked bullpen, or a diversely strategic offensive line-up (take your pick of cheesy metaphors).
"[The company] has a range of products well suited to a market that is centered around broadband rollouts," LeMaistre points out. "So it looks like a solid business that is on course to grow its full-year 2013 revenues from the $3.32 billion it generated in 2012."
Either way, whatever happens, the deal is a home-run for investors. As recorded by Light Reading, "the Carlyle Group LLC, which has owned the company since January 2011, is selling about 7.7 million shares, which should net it more than $100 million."
Full Blog: CommScope Settles for Reduced IPO Price (lightreading.com)
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