Coleman Cable to repay bank debt using proceeds from private offering

By Sara Rosenberg

New York, Sept. 13 - Coleman Cable Inc. plans on repaying outstanding debt under its asset-based credit facility using proceeds from a pending private offering of common securities, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

As of June 30, $51.5 million was borrowed under the facility.

Remaining proceeds from the private offering would be used to repurchase $77.2 million of common stock from certain shareholders and provide $16.8 million of working capital.

The company's credit facility is a $75 million asset-based loan with Wachovia Bank that matures Sept. 28, 2009.

After the consummation of the private offering, and as early as the fourth quarter of 2006, the company may terminate its existing credit facility and put a new, more favorable credit facility in place, the filing added.

Coleman is a Waukegan, Ill.-based designer, developer, manufacturer and supplier of electrical wire and cable products.

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