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General Cable amends revolver’s LoC sublimits, divestiture terms
By Marisa Wong
Madison, Wis., March 13 – General Cable Corp. entered into a fifth amendment to its existing asset-based revolving credit facility on March 9, according to an 8-K filing with the Securities and Exchange Commission.
Under the amendment, the aggregate amount of letters of credit that the company and its subsidiaries may borrow under the credit agreement is $250 million, with sublimits of $142.5 million by U.S. subsidiaries, $32.5 million by Canadian subsidiaries and $75 million for European subsidiaries.
The primary purpose of the fifth amendment is to provide that no consent of lenders will be required for each divestiture or sale of the company’s assets in Asia and Africa having a fair market value in excess of $50 million.
Among other requirements, a permitted divestiture will not require consent if the company can certify as to pro forma compliance with the fixed-charge coverage ratio test contained in the credit agreement, both before and after giving effect to the sale, and the sale and the application of proceeds are made in full compliance with the indentures for the company’s senior notes and subordinated notes.
The amendment also generally provides that if the net proceeds from a permitted divestiture are received by any loan party, the borrowers will prepay the obligations in an aggregate amount equal to 100% of the proceeds to the extent the obligations are then outstanding.
JPMorgan Chase Bank, NA is the administrative agent for the credit agreement.
General Cable is a Highland Heights, Ky.-based producer of copper, aluminum and fiber optic wire and cable products.
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