Form 4: Carlyle Group Entities Report Receipt of CommScope Preferred Stock Dividend

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

Summary

• Carlyle Group Inc. and several affiliated entities have filed a Form 4 with the SEC.
• The filing reports the receipt of Series A Convertible Preferred Stock of CommScope Holding Company, Inc. as a payment-in-kind dividend.
• The dividend was paid on shares of Series A Convertible Preferred Stock owned on the dividend record date.
• The reporting entities include Carlyle Group Inc., Carlyle Holdings I GP Inc., Carlyle Holdings I GP Sub L.L.C., Carlyle Holdings I L.P., CG Subsidiary Holdings L.L.C., TC Group, LLC, TC Group Sub L.P., TC Group VII S1, L.L.C., TC Group VII S1, L.P., and Carlyle Partners VII S1 Holdings, L.P.
• The number of shares received totals 16,198.
• Holders of the Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per year, payable quarterly in arrears.
• Each share of Preferred Stock is initially convertible into 36.3636 shares of Common Stock, subject to anti-dilution adjustments.

Sentiment

Score: 6

Explanation: The document is a routine filing related to dividend distribution, indicating a neutral sentiment. It reflects ongoing financial activity but doesn't suggest significant positive or negative implications.

Positives

• The receipt of preferred stock as a dividend provides Carlyle Group with additional equity in CommScope.
• The 5.5% dividend rate on the preferred stock provides a steady income stream.

Future Outlook

The 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 ownership adjustments and dividend distributions within CommScope, a company in the communication infrastructure sector. Carlyle Group's continued involvement as a significant shareholder is noteworthy.

Stakeholder Impact

• Shareholders of CommScope may be interested in the dividend distribution to Carlyle Group, as it reflects the company's financial obligations and capital structure.
• The dividend payment could impact CommScope's cash flow and financial performance.

Key Dates