Reuters reported The Carlyle Group plans to take affiliate Commscope public:
Telecommunications equipment company CommScope Holding Co Inc set pricing terms for its initial public offering, which could value the company at up to $3.9 billion, the price at which it was taken private in 2011 by Carlyle Group LP.How much did Carlyle suck from Commscope in dividends and management fees the last three years? The S-1/A stated:
Since January 1, 2011, we have declared and paid special cash dividends and distributions in an aggregate amount of $750.7 million to our equity holders.
...special dividends of $1.29 per share in 2012 and $3.48 per share in 2013.
Carlyle added debt to Commscope in a dividend freeing move:
In May 2013, we issued $550 million of the 2020 Notes, the net proceeds of which were used to pay cash dividends to our common shareholders and distributions to certain option holders.
And who were the "certain option holders" enriched by Commscope's debt for dividend move?
In a mere seven months Carlyle stripped $750 million from Commscope:
On November 30, 2012, we declared and paid a special dividend of $200.0 million, or $1.293 per share, on our common stock, which we refer to herein as the “2012 Dividend.” In addition, on May 20, 2013 and June 28, 2013 we declared special dividends of $342.8 million, or $2.213 per share (paid on May 28, 2013), and $195.9 million, or $1.265 per share (paid on June 28, 2013), respectively, on our common stock, which we refer to herein together as the “2013 Dividends.” The 2012 Dividend and the 2013 Dividends are referred to herein together as the “Special Dividends. Of these amounts, approximately $727.0 million was paid to Carlyle according to its ownership of common stock.”As for PEU deal costs and management fees paid by Commscope:
Reflects charges of $3.0 million, $2.5 million, $3.3 million, $1.8 million and $2.7 million and for the years ended December 31, 2010, 2011 and 2012 and the six months ended June 30, 2012 and 2013, respectively, related to due diligence and other transaction related costs on potential and consummated acquisitions. Includes $2.9 million, $3.0 million, $1.5 million and $1.5 million for the years ended December 31, 2011 and 2012 and the six months ended June 30, 2012 and 2013, respectively, related to the Carlyle management fee.
Tack on another $50 million in entry and exit fees to Carlyle:
...we paid an annual management fee to Carlyle of $3 million plus expenses. Further, under this agreement Carlyle was entitled to additional reasonable fees and compensation agreed upon by the parties for advisory and other services provided by Carlyle to us from time to time, including additional advisory and other services associated with acquisitions and divestitures or sales of equity or debt instruments. Carlyle also received a one-time transaction fee of $30 million upon consummation of the Acquisition for transactional advisory and other services. Except for this one-time transaction fee, Carlyle did not provide any additional services beyond consulting and oversight services for the years ended December 31, 2012 and 2011. We will pay Carlyle a fee of approximately $20 million to terminate the management agreement in connection with the consummation of this offering.Carlyle gets theirs, even when it appears they don't.
Update 10-25-13: Commscope's IPO price came in below the expected range.
