General Cable solicits consents to amend floaters and 5¾% notes

By Marisa Wong

Madison, Wis., Nov. 4 - General Cable Corp. said it has begun a consent solicitation to amend the indentures and to provide related waivers for its senior floating-rate notes due 2015 and 5¾% senior notes due 2022.

The company wants to make changes to the indentures' reporting covenants and to waive defaults that have occurred before the proposed amendments become effective.

The amendments require the consent of holders of a majority in principal amount of each series of the outstanding notes.

If the company obtains the necessary consents, then the company's 10-Q filings with the Securities and Exchange Commission for the quarters ended June 28 and Sept. 27 on or prior to March 17 would satisfy the company's obligations under the reporting covenants. However, if the company does not comply with the reporting covenants by March 17, then that noncompliance will constitute an event of default under the notes.

If the needed consents are obtained on or prior to expiration of the solicitation, noteholders will receive additional interest at the rate of 0.5% per year from Nov. 1 until the earlier of March 17 and the date that the company complies with the reporting covenants under the indentures.

Noteholders who deliver their consents will also be eligible to receive a consent fee, which will only be payable in the event the company has not complied with the reporting covenants by Jan. 31. The consent fee for both the floating-rate notes and the 5¾% notes is $2.50 per $1,000 principal amount. The solicitation will expire at 5 p.m. ET on Nov. 8.

Only noteholders of record as of 5 p.m. ET on Nov. 1 can provide consents and are eligible to receive consent fees.

J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200) is the solicitation agent. D.F. King & Co., Inc. (800 290-6429 or 212 269-5550) is the information and tabulation agent.

General Cable is a Highland Heights, Ky.-based developer, designer, manufacturer, marketer and distributor of copper, aluminum, and fiber optic wire and cable products.

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