General Cable amends revolver to up size, extend tenor, lower rate

By Sara Rosenberg

New York, Nov. 28 - General Cable Corp. amended its senior secured revolving credit facility, increasing the size to $300 million from $275 million, adding a $50 million accordion feature, extending the maturity to August 2010 from November 2008 and lowering borrowing costs by about 75 basis points, according to a company news release.

Furthermore, under the amendment, unused facility fees were reduced, the annual limit on capital expenditures was eliminated, permitted debt was expanded to include acquired debt of newly acquired foreign subsidiaries and the level of permitted loan-funded acquisitions was significantly increased.

This amendment satisfies the financing conditions to the company's offer to convert shares of its 5.75% series A redeemable convertible preferred stock into its common stock, which was announced and commenced on Nov. 9. The company will now be able to draw funds under its credit facility to pay about $16.3 million for the conversion offer premium, plus funds necessary to make a final dividend payment to stockholders who convert their shares, as well as to pay all other costs and expenses related to the offer.

"Our operating results have steadily improved since our refinancing in November 2003, and at the end of the third quarter of 2005, General Cable had net debt of $301 million compared to net debt of $380 million just prior to the refinancing. This operating improvement and de-leveraging has provided us the opportunity to amend and extend our credit facility and thereby improve our financial flexibility and lower our borrowing costs," said Christopher Virgulak, executive vice president, chief financial officer and treasurer, in the release.

"These revised provisions not only provide long-term flexibility, but also allow us to complete the pending Silec acquisition as well as pay the conversion premium and other costs and expenses related to our preferred stock conversion offer. Our lenders continue to provide the support necessary to position General Cable for sustained long-term growth," Virgulak concluded in the release.

The amendment was completed on Nov. 23.

Merrill Lynch is the administrative agent on the deal.

General Cable is a Highland Heights, Ky.-based supplier of wire and cable products for the energy, specialty, industrial and communications markets.

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