General Cable to get new revolver, interim loan to fund Phelps Dodge International acquisition

By Angela McDaniels

Seattle, Sept. 12 - General Cable Corp. received commitments for an up to $400 million senior secured first-lien revolving loan facility and an up to $300 million second-lien secured interim loan, according to an 8-K filing with the Securities and Exchange Commission.

The interim loan will have a tenor of one year and will be repayable, at the lenders' option, in seven-year second-lien senior secured debt securities or with seven-year second-lien senior secured loans.

The revolver will be borrowed by General Cable subsidiary General Cable Industries, Inc.

Merrill Lynch Capital Corp. will be the agent.

Proceeds, along with available cash, will be used to fund the acquisition of Freeport-McMoRan Copper & Gold Inc.'s wire and cable business, which operates as Phelps Dodge International Corp.

The $735 million acquisition was unanimously approved by General Cable's board of directors and is expected to close in the fourth quarter, a company news release stated.

Proceeds will also be used to refinance borrowings under General Cable Industries' existing revolver and for general corporate purposes.

Closing of the interim loan is subject to, among other conditions, General Cable Industries amending its existing revolver or entering into a new asset-based revolving credit facility with commitments of at least $400 million.

General Cable is a Highland Heights, Ky.-based maker of copper, aluminum and fiber optic wire and cable products.

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