Ply Gem plans to price $550 million eight-year notes on Friday

By Paul A. Harris

Portland, Ore., Jan. 16 - Ply Gem Industries, Inc. was scheduled to hold a mid-morning conference call with investors on Thursday to discuss its $550 million offering of eight-year senior notes (Caa1/CCC+/), according to a syndicate source.

The deal is scheduled to price on Friday.

Preliminary guidance has the notes coming with a yield of 6% to 6½%, according to a buyside source.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, J.P. Morgan Securities LLC and Goldman Sachs & Co. are the joint bookrunners for the Rule 144A and Regulation S with registration rights offer.

The notes become callable in three years at par plus 75% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds, together with a $380 million term loan and cash on hand, will be used to repurchase or redeem $756 million of the company's 8¼% senior secured notes due 2018 and $96 million of its 9 3/8% senior notes due 2017.

Ply Gem is a Cary, N.C.-based manufacturer of exterior building products.

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