Norcraft outlines details on proposed $195 million credit facility

By Sara Rosenberg

New York, Oct. 22 - Norcraft Cos. Inc. revealed tranching and pricing details on its up to $195 million credit facility that will be done in connection with its initial public offering of common stock, according to an S-1/A filed with the Securities and Exchange Commission on Tuesday.

The facility will include an up to $35 million ABL revolver and a $160 million seven-year term loan.

Pricing on the revolver is expected to range from Libor plus 175 basis points to 225 bps based on excess availability, and the commitment fee is expected to range from 25 bps to 50 bps based on usage.

The term loan is anticipated to carry pricing of Libor plus 450 bps with a 1% Libor floor and include 101 soft call protection for six months.

RBC Capital Markets and KeyBank are leading the new deal.

Proceeds from the credit facility and stock offering will be used to redeem 10½% senior secured second-lien notes due 2015 on or shortly after Dec. 15, 2013 and purchase at least a nominal interest in Norcraft Cos. LLC following the closing of the offering.

Norcraft is an Eagan, Minn.-based manufacturer of kitchen and bathroom cabinetry.

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