General Cable to price $315 million seven-year convertibles talked at 0.75%-1.25%, up 22.5%-27.5%

By Kenneth Lim

Boston, Nov. 8 - General Cable Corp. plans to price Thursday after the market closes $315 million of seven-year convertible senior notes talked at a coupon of 0.75% to 1.25% and an initial conversion premium of 22.5% to 27.5%.

The notes are being offered at par, and there is a greenshoe for a further $45 million.

Merrill Lynch and Credit Suisse are the bookrunners of the registered off-the-shelf offering.

The notes will be non-callable and will have no puts.

There will be a contingent conversion hurdle at 130% of the conversion price.

The notes will have dividend protection and takeover protection in the form of a change-of-control put and a make-whole premium.

There will be a net-share settlement feature.

General Cable, a Highland Heights, Ky.-based maker of electrical and electronic wires and cables, said $61.4 million of the proceeds will be used to repay an outstanding senior secured debt that matures in 2010. It will also use the proceeds to fund convertible note hedge and warrant transactions.

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