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General Cable gets tenders for 97.8% of 1% convertibles in exchange
By Jennifer Chiou
New York, Dec. 16 - General Cable Corp. said it received tenders for $464,412,000, or 97.8%, of its 1% senior convertible notes due 2012 in the exchange offer that wrapped at midnight ET on Dec. 15.
The deadline had been extended from Dec. 11 and Nov. 24.
The company offered $925 principal amount of its new subordinated convertible notes due 2029 on offer for each $1,000 principal amount of the 1% convertibles.
As a result, General Cable will issue $429,463,000 of the new notes.
General Cable will also pay accrued interest.
The new convertibles will carry a coupon of 4.5% until Nov. 15, 2019. After that date, the coupon will be 2.25%.
The initial conversion price will be $36.75, which is the previously set minimum. The company calculated the price using 122.5% of the volume-weighted average price, which was the average of the stock's daily VWAP during the 10-trading-day period that ended on Dec. 11.
The initial conversion ratio is 27.2109 shares per $1,000 principal amount.
Because the average VWAP was less than $30.00, the initial conversion price was set to the minimum. In addition, the initial conversion value for the purposes of calculating the amount payable by the company due to a tax-related redemption of the new convertibles was $816.3270.
The exchange offer was conditioned on holders of at least $100 million of the 1% convertibles tendering.
At 4 p.m. ET on Dec. 11, holders had tendered $384,901,000 of the 1% convertibles. At the close of business on Nov. 9, holders had tendered $500,000 principal amount of convertibles.
Goldman Sachs & Co. (877 686-5059 or 212 902-5183) and J.P. Morgan Securities Inc. (800 261-5767 or call collect 212 622-2781) were the dealer managers. D.F. King & Co., Inc. was the exchange agent and information agent (212 269-5550 or 800 488-8035).
General Cable produces and distributes copper, aluminum and fiber optic wire and cable and is based in Highland Heights, Ky.
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