General Cable Corporation
) recently increased its existing $700 million Senior Secured
Credit Facility to $1.0 billion, and the maturity date was also
extended to 2018.
The company's Senior Secured Credit Facility is an asset-based
revolving credit facility supporting its business requirements in
North America at present. This $300 million increase will also
include a part of General Cable's European assets, thereby
creating a single facility for its businesses in both North
America and Europe. However, the other terms of the credit
facility remain unchanged.
This revised credit facility is expected to make the company's
financial position substantially flexible to support its capital
structure and operations across the world, provided the minimum
availability and fixed coverage requirements are met. The
increased Senior Secured Credit facility will also help support
the day to day business activities as the company intends to
utilize portions of this credit facility to issue Letter of
The new credit facility will be secured by the company's U.S.,
Canadian and European subsidiaries. Further, some of the
intangible and tangible assets and properties from the businesses
of U.S., Canada and Europe will be termed as their first priority
Management expects this amendment in credit facility to
provide liquidity for supporting the working and other capitals
required, as the rates and terms for the extended maturity
profile are in line with market expectations. This is expected to
leverage the company's growth opportunities and the share
repurchase programs along with the quarterly dividends.
Headquartered in Highland Heights, KY, General Cable is
engaged in the development, design, manufacture, marketing, and
distribution of copper, aluminum and fiber optic wire and cable
products for the energy, industrial, specialty, and
General Cable currently has a Zacks Rank #4 (Sell). Other
stocks in the industry worth buying at the moment are
Encore Wire Corp.
), which holds a Zacks Rank #1 (Strong Buy),
Smith AO Corp.
), both having a Zacks Rank #2 (Buy).
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