(Bloomberg) -- CommScope Holding Co. bonds and shares dropped Thursday after the company released third-quarter results and said it yet to reach debt refinancing or recapitalization agreement with a group of creditors.
Shares slumped as much as 32%, the most since February, to $4.76. A CommScope bond due in 2028 dropped 2.75 cents to 85.5 cents on the dollar, according to data provider Trace.
The telecommunications infrastructure company said in a Thursday filing that it had been negotiating with an ad-hoc group of bondholders to address debt due in 2025 and 2026 and was studying options for a broader refinancing of bonds maturing in subsequent years. Talks aren’t continuing with that group, though CommScope said it remains in “active and constructive” discussions with other creditors.
The firm added it’s “actively pursuing other alternatives available” to address upcoming maturities and cut leverage.
Bloomberg News reported last week that CommScope and some of its had entered into confidential talks. The company had $8 billion of long-term debt as of Sept. 30, according to the company’s quarterly report.
CommScope stated a third-quarter adjusted loss of 5 cents per share on sales of $1.43 billion, 11% less than a year earlier. S&P Global Ratings said in May it expected CommScope’s revenue to decline this year because of a “challenging macroeconomic environment and soft end-market demand.”
(Earlier versions of this story were corrected to remove analysts’ third quarter estimates and fix the period’s revenue.)
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