Encore Wire uses excess cash to pay off $100 million senior notes

By Lisa Kerner

Charlotte, N.C., Jan. 19 - Encore Wire Corp. announced it paid off the $100 million in senior private placement notes that were due in the third quarter of 2011.

"Our cash balance has been holding steady above $200 million for several quarters, and our board determined that paying down the debt was a prudent move in this economic environment," president and chief executive officer Daniel L. Jones said in a company news release.

Jones said the total amount of the payment made was $103.8 million, which included accrued interest as well as a pre-payment fee.

Encore will incur a charge of $2.6 million in connection with the transaction and expects to realize a net cash savings of $1.8 million over the original remaining life of the notes.

"After this transaction, Encore has zero debt outstanding, over $100 million in cash and a $150 million revolving line of credit available that currently is untapped," Jones said.

Encore Wire is a McKinney, Texas-based manufacturer of copper electrical wire for interior wiring.

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