This excerpt taken from the BGC 8-K filed Nov 2, 2005.
On October 10, 2005, General Cable announced that it had reached an agreement in principle to acquire the wire and cable manufacturing business (Silec) of SAFRAN SA. Silec, which is based in Montereau, France employs 1,000 associates, and has nearly one million square feet of manufacturing space. Silec is recognized as a global leader in the design, engineering and installation of high voltage underground links including numerous highly technical projects in North America. They are also a major producer of energy and industrial cable products for the European market. General Cable has agreed to pay approximately 75 million Euros, including about 65 million Euros for net working capital, subject to certain closing adjustments, and expects the transaction to be marginally accretive in year one.
On October 13, 2005, General Cable entered into a US dollar to Euro cross currency interest rate swap with a notional value of $150 million. The swap has a term of just over two years with a maturity date of November 15, 2007, coinciding with the earliest redemption date of the Companys Senior Notes. Under the swap arrangement, the Company has notionally exchanged $150 million at a fixed interest rate of 9.5%, for approximately 125 million Euros (based on an exchange rate of 1.198 dollars per Euro) at a fixed interest rate of 7.5%. The change in interest rates will result in an improvement in pre-tax earnings of approximately $3 million per year until maturity.
General Cable will discuss third quarter results on a conference call and webcast at 8:30 a.m. ET tomorrow, November 2. Call information is available at www.generalcable.com.
General Cable (NYSE:BGC), headquartered in Highland Heights, Kentucky, is a leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty and communications markets. Visit our website at www.GeneralCable.com.