NCI Building cuts spread on $250 million loan to Libor plus 675 bps

By Sara Rosenberg

New York, June 22 - NCI Building Systems Inc. trimmed pricing on its $250 million first-lien term loan (Caa1/B) due May 2, 2018 to Libor plus 675 basis points from revised talk of Libor plus 700 bps, but it still came wide of initial talk of Libor plus 600 bps, according to a market source.

Additionally, the original issue discount was revised to 95 from recent guidance of 97 and initial talk of 99, the source said.

The 1.25% Libor floor was left unchanged.

There is soft call protection of 102 in year one and 101 in year two.

At the time of the first pricing change, call protection was sweetened from just 101 soft call for one year and the tenor was shortened from seven years.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, UBS Securities LLC and Citigroup Global Markets Inc. are leading the loan.

Proceeds were used to fund the $145 million acquisition of Metl-Span LLC from BlueScope Steel North America Corp. and refinance an existing loan - the completion of which was announced by the company on Friday.

Other funds for the transaction came from about $40 million of cash on hand.

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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