The market for General Cable Corp.'s bank loan was a touch stronger last week following the company's recent filing of a shelf offering for up to $100 million in new bonds or equity. The bank debt was quoted in the 89-92 context by the end of last week, up from the 881/3-911/2 range, according to LoanX. If the company issues equity, the proceeds of the offering will be applied proportionally to the company's "A" and "B" term loans, explained Christopher Virgulak, executive v.p. and cfo of General Cable. But the "B" note holders have the right to decline the pay down, in which case the proceeds would be applied to the "A" loan until the piece is completely repaid, he added.
If General Cable opts for new debt, the company will have to approach its lenders to receive an amendment. Under that scenario, lenders would most likely require the company to use some of the proceeds from the offering to pay down the bank debt, Virgulak said. General Cable has not decided on a time for any issuance, he added. The company has $307.3 million in U.S. term loans, $30.1 million in multicurrency term loans, and a multicurrency revolver for up to $200 million. General Cable's leverage is about 6.6 times.