NCI sets Thursday meeting for $240 million covenant-lite term loan

By Paul A. Harris

Portland, Ore., May 15 - NCI Building Systems Inc. plans to roll out a $240 million six-year first-lien covenant-lite term loan (B1/BB-) at a Thursday bank meeting, according to a market source.

The deal is talked to come at a Libor spread of 350 basis points to 375 bps with a 1% Libor floor at a reoffer price of 99.5.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, UBS Investment Bank and Citigroup Global Markets are the joint lead arrangers.

The loan comes with 101 repricing protection for six months.

Commitments are due on May 30.

Proceeds will be used to refinance the existing term loan.

The company said that it expects the refinancing to significantly reduce annual interest costs while also increasing overall financial flexibility.

The refinancing is being done in connection with the conversion of the company's preferred shares to common shares by Clayton, Dubilier & Rice LLC.

NCI is a Houston-based manufacturer of metal products for the nonresidential building industry.

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