Bank of America and Wachovia Securities launched syndication of a $325 million refinancing for NCI Building Systems last Thursday. The deal comprises a five-year, $125 million revolver and six-year, $200 million "B" loan. The revolver and "B" loan carry a spread of LIBOR plus 1 3/4% and LIBOR plus 2 1/4%, respectively. Proceeds will be used to redeem $125 million of 9 1/4% senior subordinated notes due 2009 and repay the company's existing credit facility.
B of A and Wachovia were the leads on NCI's previous facility, but the exact size and pricing of this facility could not be determined. Other lenders on the credit include GE Capital, SunTrust Bank, National City Bank, Southwest Bank of Texas, Merrill Lynch Capital, Guaranty Bank and Comerica Bank. NCI makes metal building components and pre-engineered metal building systems. Robert Medlock, NCI's cfo, was traveling and could not be reached. Wachovia bankers did not return calls and a B of A spokeswoman declined comment.