General Cable offers premium to encourage conversion of 5.75% preferred shares

By Angela McDaniels

Seattle, Nov. 9 - General Cable Corp. said it will pay a cash premium to holders of its 2,069,907 shares of 5.75% series A redeemable convertible preferred stock who elect to convert their preferred stock into shares of General Cable common stock.

The offer will expire at 5 p.m. ET on Dec. 9.

For each share converted, the holder will receive a cash premium of $7.88 and 4.998 shares of common stock, subject to adjustment, and accrued dividends.

The cash premium will cost the company $16.3 million, if all the shares of preferred stock are converted.

The offer is conditioned upon General Cable's ability to obtain an amendment to its senior secured facility to permit it to borrow the aggregate amount needed complete the offer, the company said.

A registration statement relating to the shares of common stock to be offered has been filed with the Securities and Exchange Commission, General Cable said, but has not yet become effective.

Merrill Lynch & Co. (888 654-8637) is dealer manager, D.F. King & Co. Inc. (212 269-5550) is information agent and Mellon Investor Services LLC (800 685-4258) is conversion agent.

General Cable, headquartered in Highland Heights, Ky., develops wire and cable products for the energy, industrial and communications markets.

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