Ply Gem's incremental term loan hits the secondary wrapped around par ½

By Sara Rosenberg

New York, Aug. 27 - Ply Gem Industries Inc. allocated its $131 million incremental credit facilities (B1), with the term loan seen quoted at plus par levels in what only can be described as an incredibly quiet market.

More specifically, the $111 million incremental term loan was quoted at par 3/8 bid, par 5/8 offered, according to traders.

"They gave out allocations on a Friday in August. Half of every desk is off. I haven't seen anything trading," one trader said.

However, according to a second trader about "half a dozen" trades took place following the paper's morning entrance into the secondary loan market as some investors were cleaning out allocations.

The term loan is priced with an interest rate of Libor plus 250 basis points, in line with existing pricing being that the company is just layering on the new debt.

Originally, the company came to market with $141 million in term debt but downsized the tranche following a $30 million upsizing to its bond offering. The $135 million add-on to the company's 9% notes of 2012 priced at 100.25 on Aug. 18.

Ply Gem's deal also contains a $20 million five-year incremental revolver with an interest rate of Libor plus 250 basis points.

UBS Securities and Deutsche Bank are joint lead arrangers on the deal, with UBS left lead. JPMorgan is a co-manager.

Proceeds from the bank and bond deals will be used to help fund the acquisition of MW Manufacturers Inc. from Investcorp for about $320 million in cash. Investment vehicles associated with Caxton-Iseman Capital Inc., the New York-based private equity firm that acquired Ply Gem in February, have agreed to make an additional cash investment in Ply Gem to support the transaction as well.

Completion of the acquisition, which is expected to occur by the end of August, is subject to customary closing conditions.

Ply Gem is a Kearney, Mo., manufacturer and distributor of products for use in the residential new construction, do-it-yourself and professional renovation markets. MW Manufacturers is a Rocky Mount, Va., manufacturer of vinyl, clad-wood, vinyl-wood, wood and composite window and patio door products.

Crown allocations next week

Crown Cork & Seal Co. Inc. is expected to allocate and break for trading its $625 million credit facility (Ba3/BB) mid-to-late next week, according to a market source.

The facility consists of a $200 million revolver with an interest rate of Libor plus 275 basis points, a $200 million euro revolver with an interest rate of Libor plus 275 basis points, a $100 million revolving letter-of-credit facility with an interest rate of Libor plus 275 basis points and a $125 million term loan B due 2011 with an interest rate of Libor plus 225 basis points.

The term loan B was added to the deal earlier this month following pricing of a euro 6.25% first priority senior secured notes offering that was downsized to €350 million from €460 million.

Citigroup, Deutsche and Lehman are the lead banks on the deal, with Citigroup on the left.

Proceeds from the term loan and the bonds will be used to repay the company's existing term loans that mature in 2008. The new revolver would replace the company's existing revolver that comes due in 2006.

Closing is expected to take place on Sept. 1.

Crown Cork is a Philadelphia supplier of packaging products.

Nortek closes

Nortek Holdings Inc. closed on its new $800 million credit facility (B1/B+) consisting of a $700 million seven-year term loan with an interest rate of Libor plus 250 basis points and a step down in pricing to Libor plus 225 basis points if leverage falls below 4.5x, and a $100 million six-year revolver with an interest rate of Libor plus 225 basis points and a 50 basis point commitment fee.

Originally, the term loan was talked at Libor plus 275 basis points but was reverse flexed with the addition of a step down due to oversubscription. Furthermore, the revolver was also reverse flexed during syndication, moving down from initial price talk of Libor plus 250 basis points.

UBS and Credit Suisse First Boston were the lead banks on the deal, with UBS listed on the left.

Proceeds, combined with proceeds from a bond offering, were used to help fund Thomas H. Lee Partners', in partnership with management, approximately $1.75 billion acquisition of Nortek from affiliates of Kelso and Co. LP.

Nortek, a Providence, R.I., designer, manufacturer and marketer of residential and commercial building products, is owned by some members of management and Kelso and Co. LP.

Simmon closes

Simmons Co. closed on the repricing of its approximately $400 million term loan B under which the company lowered the interest rate on the tranche to Libor plus 250 basis points from Libor plus 275 basis points, according to a market source.

Goldman Sachs was the sole lead bank on the deal.

Originally, the company was aiming to get an interest rate of Libor plus 225 basis points, but during the repricing process the interest rate was flexed up by 25 basis points.

Simmons is an Atlanta manufacturer and distributor of branded bedding products.

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