Form 4: Carlyle Group Reports Changes in Beneficial Ownership of CommScope Holding Company, Inc.

Carlyle Group and affiliated entities report acquisition of CommScope Series A Convertible Preferred Stock as a payment-in-kind dividend.

Summary

• Carlyle Group Inc. and several affiliated entities filed a Form 4 with the SEC regarding changes in beneficial ownership of CommScope Holding Company, Inc. securities.
• The reported transaction involves the acquisition of 15,978 shares of Series A Convertible Preferred Stock by Carlyle Partners VII S1 Holdings, L.P. on March 31, 2024.
• These shares were received as a payment-in-kind dividend on existing holdings of Series A Convertible Preferred Stock.
• The Series A Convertible Preferred Stock is convertible into common stock at an initial rate of 36.3636 shares of common stock per share of preferred stock, subject to anti-dilution adjustments.
• As of the report, Carlyle Partners VII S1 Holdings, L.P. indirectly holds 1,178,063 shares of CommScope common stock.
• The Carlyle Group Inc. indirectly controls these holdings through a chain of entities.

Sentiment

Score: 6

Explanation: The document is a routine filing related to changes in ownership. It doesn't contain overtly positive or negative information, hence a neutral sentiment score.

Future Outlook

The Series A Convertible Preferred Stock will remain outstanding indefinitely unless converted, repurchased, or redeemed by the Issuer. The Issuer may mandatorily convert the Preferred Stock into Common Stock at any time after the three-year anniversary of the issuance, if certain conditions are met.

Industry Context

This filing reflects ongoing investment activity by a major private equity firm (Carlyle Group) in a publicly traded company (CommScope). Changes in ownership percentages by significant shareholders are closely watched by the market as they can signal confidence or lack thereof in the company's prospects.

Stakeholder Impact

• The change in ownership may have a minor impact on shareholders, as it reflects the ongoing investment activity of a major institutional investor.

Key Dates