(Bloomberg) -- Some CommScope Holding Co. creditors have entered into confidential talks with the telecommunications infrastructure firm on a potential extension of debt maturities, according to people familiar with the situation.
Fund managers including Apollo Global Management Inc. and Monarch Alternative Capital are now under nondisclosure agreements that allow for the parties to share private information, said the people, who asked to remain anonymous because they are not authorized to speak publicly.
In a reply to a Bloomberg News request for comment, CommScope didn’t respond specifically about talks with the fund managers. It did say that discussions with creditors to identify a course of action on its debt capital structure “are ongoing and continue to be constructive,” and that several alternatives to address upcoming maturities are still being evaluated.
CommScope added that strengthening financial results and proceeds from its planned $2.1 billion asset sale to Amphenol Corp. “have greatly improved our position with our creditors.” CommScope has more than $9 billion of debt — over half of which comes due in 2025 and 2026, according to data compiled by Bloomberg.
A representative for Apollo declined to comment, as did CommScope adviser Moelis & Co. Messages left with Monarch were not immediately returned.
CommScope Plays Chicken With Creditors as Debt Comes Due in June
CommScope said earlier this month it had ended talks with an ad-hoc group of creditors after being unable to reach a deal on a potential refinancing or recapitalization.
One group of creditors holding a variety of CommScope debt has been working with PJT Partners Inc. and Gibson Dunn & Crutcher while a separate group — whose holdings are weighted toward unsecured notes — has been working with Ducera Partners and Akin Gump Strauss Hauer & Feld, Bloomberg reported early this year.
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