Ply Gem prepays $30 million of term loan to trim down outstanding debt

By Susanna Moon

Chicago, May 9 – Ply Gem Industries, Inc. prepaid $30 million of its term loan facility on March 10 to reduce its outstanding debt, according to a 10-Q filed by Ply Gem Holdings, Inc. for the quarter ended April 2 with the Securities and Exchange Commission.

The term loan facility requires Ply Gem Industries to prepay term loans with

• 50% of the company’s annual excess cash flow to the extent it exceeds $15 million, which will be reduced to 25% if the consolidated senior secured debt ratio is equal or less than 2.5 times but greater than 2 times and to 0% if the consolidated senior secured debt ratio is equal to or less than 2 times;

• 100% of the net cash proceeds of some non-ordinary course asset sales or certain insurance and condemnation proceeds, in each case subject to certain exceptions and reinvestment rights; and

• 100% of the net cash proceeds of some issuances of debt, other than proceeds from debt permitted under the term loan.

As of Dec. 31, the company's consolidated senior secured debt ratio was 1.97 and, as a result, no excess cash flow payment was required under the loan terms.

Ply Gem Industries may voluntarily repay outstanding loans under the facility at any time without premium or penalty, other than breakage costs for Libor loans.

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

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