UBS and Deutsche Bank are pitching a $300 million facility backing Caxton-Iseman Capital's $570 million acquisition of Ply Gem Industries, a subsidiary of Nortek. The financing comprises a five-year, $65 million revolver and seven-year, $235 million term loan. Pricing on the revolver and term loan is LIBOR plus 21/2% and LIBOR plus 23/4%, respectively.
Approximately $238 million of bank debt will be used to finance the acquisition. There will be $180 million of senior subordinated notes and the sponsor and management will pump $141 million of equity into the deal. Pro forma for the acquisition and recapitalization as of October 2003, debt-to-EBITDA at the operating company level was 5.2 times. CIBC World Markets and Merrill Lynch are acting as co-arrangers and documentation agents on the deal. Nortek, owned by Kelso & Co. and management, acquired Ply Gem in August 1997. Ply Gem manufactures and distributes do-it-yourself home improvement products.