NCI Building to hold meeting on Wednesday for $250 million term loan

By Sara Rosenberg

New York, June 4 - NCI Building Systems Inc. has set a bank meeting for 10 a.m. ET on Wednesday to launch a proposed $250 million seven-year first-lien term loan, according to a market source.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, UBS Securities LLC and Citigroup Global Markets Inc. are the lead arrangers on the deal.

The loan includes 101 soft call protection for one year, the source said.

Based on filings with the Securities and Exchange Commission, it is expected that the loan will be priced at Libor plus 550 basis points with a 1.25% Libor floor, and that it will be covenant-light.

Official price talk is not yet available, the source added.

Proceeds will be used to help fund the acquisition of Metl-Span LLC for $145 million in cash from BlueScope Steel North America Corp. and to refinance existing bank debt.

Other funds for the transaction will come from cash on hand.

Closing is subject to conditions, including the expiration or termination of any applicable waiting period under the Hart Scott Rodino Act.

With the transaction, the company will be amending its ABL revolver with Wells Fargo Capital Finance LLC to allow for the acquisition and the entrance into the term loan, increase the size to $150 million and extend the maturity to May 2, 2017.

NCI is a Houston-based manufacturer of metal products for the nonresidential building industry. Metl-Span is a Lewisville, Texas-based manufacturer and marketer of insulated building panel products.

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