New Issue: Norcraft prices $60 million tap of 10½% notes due 2015 at 104 to yield 9.397%

By Paul A. Harris

Portland, Ore., May 23 - Norcraft Cos. LP and Norcraft Finance Corp. priced a $60 million add-on to their 10½% senior secured second-lien notes due Dec. 15, 2015 (B3/B-/) at 104 to yield 9.397% on Monday, according to an informed source.

The reoffer price came on top of the price talk.

UBS Investment Bank ran the books for the quick-to-market deal.

The Eagan, Minn.-based cabinet manufacturer plans to use the proceeds to pay for the consents received from the current operating company holders and to repurchase all of its 9¾% discount notes due 2012.

The original $180 million issue priced at 98.37 to yield 10 7/8% on Dec. 2, 2009.

Issuer:	Norcraft Cos. LP and Norcraft Finance Corp.
Face amount:	$60 million
Proceeds:	$62.4 million
Maturity:	Dec. 15, 2015
Security description:	Add-on to 10½% senior secured second-lien notes
Bookrunner:	UBS Investment Bank
Coupon:	10½%
Price:	104.0
Yield:	9.397%
Spread:	779.7 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2012, then callable at 105.25, 102.263, par on and after Dec. 15, 2014
Equity clawback:	35% at 110.50 until Dec. 15, 2012
Trade date:	May 23
Settlement date:	May 26 with accrued interest
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S
Price talk:	104
Marketing:	Quick to market
Original issue:	$180 million priced at 98.37 to yield 10 7/8% on Dec. 2, 2009
Total issue size:	$240 million

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