S&P: General Cable on watch

Standard & Poor’s said it withdrew the B+ rating on General Cable Corp.’s $250 million senior unsecured notes due 2019 because the company withdrew this note offering Sept. 29.

The agency also said it placed the company’s BB- corporate credit and various issue-level ratings on CreditWatch with negative implications.

The negative watch reflects the company’s decision to withdraw its note offering, which may prompt a revision of the company’s liquidity assessment to ‘less than adequate.’

Part of the proceeds from the $250 million note offering was supposed to refinance a $125 million note that must be addressed by Dec. 31, S&P said.

Without new financing, the agency said it expects General Cable will use its asset-based loan to repay the $125 million notes, thereby reducing availability to borrow under the ABL such that the company may no longer meet the 1.2x threshold for liquid sources over uses.

The $125 million notes need to be refinanced or repaid by Dec. 31 to avoid acceleration of the asset-based loan’s maturity to that date, S&P said.

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