HOUSTON, Feb. 9, 2018 /PRNewswire/ -- NCI Building
Systems, Inc. (NYSE: NCS) ("NCI" or the "Company") today announced
it has closed on a new $415.0 million
term loan facility and used the proceeds of the transaction to
redeem and retire the Company's existing 8.25% senior notes due
2023 (the "Notes") and refinance its existing $144.0 million senior secured term loan.
The new term loan facility includes, among other things (i)
an extended maturity to February 7,
2025, (ii) a decrease in the interest rate margins
applicable to loans under the term loan facility, (iii) the ability
to make principal prepayments and (iv) favorable covenants similar
to those in the Company's existing term loan facility.
As a result of these refinancing transactions, the Company
expects to reduce its current effective cash interest rate from
approximately 7.0% to 3.6%, which represents a reduction in annual
interest expense of approximately $12.5
million based on current LIBOR rates.
The Company used the borrowings under the new term loan facility
to redeem the Notes and to prepay in full all loans outstanding
under the existing term loan facility and to pay related call
premiums, fees and expenses, including accrued and unpaid interest
in respect of the existing term loan facility and the Notes.
The Company also announced the closing of the previously
announced refinancing of its existing ABL facility with a new
$150.0 million ABL facility which,
among other things, (i) extended the maturity to February 8, 2023 and (ii) decreased the interest
rate margins applicable to loans under the ABL facility.
The redemption price for the Notes was 106.188% of the principal
amount redeemed, which amount is equal to $1,061.88 per $1,000.00 principal amount, plus accrued and
unpaid interest to the redemption date, in accordance with the
provisions of the indenture governing the Notes. Additional
information concerning the terms and conditions of the redemption
are fully described in the Notice distributed to holders of the
Notes. This press release is for informational purposes only and
shall not constitute an offer to purchase the Notes or any other
securities.
Forward Looking Statements
This press release forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. The words
"believe," "anticipate," "plan," "intend," "foresee," "guidance,"
"potential," "expect," "should," "will" "continue," "could,"
"estimate," "forecast," "goal," "may," "objective," "predict,"
"projection," or similar expressions are intended to identify
forward-looking statements in this press release. These
forward-looking statements reflect the Company's current
expectations and/or beliefs concerning future events. The
forward-looking statements in this press release are subject to a
number of risks and uncertainties that may cause the Company's
actual performance to differ materially from that projected in such
statements. Among the factors that could cause actual results to
differ materially include, but are not limited to, industry
cyclicality and seasonality and adverse weather conditions;
challenging economic conditions affecting the nonresidential
construction industry; volatility in the U.S. economy and abroad,
generally, and in the credit markets; substantial indebtedness and
our ability to incur substantially more indebtedness; our ability
to comply with the financial tests and covenants in our existing
and future debt obligations; operational limitations or
restrictions in connection with our debt; increases in interest
rates; recognition of asset impairment charges; commodity price
increases and/or limited availability of raw materials, including
steel; costs related to maintenance or replacement of our ERP
system; our ability to make strategic acquisitions accretive to
earnings; retention and replacement of key personnel; our ability
to carry out our restructuring plans and to fully realize the
expected cost savings; enforcement and obsolescence of intellectual
property rights; fluctuations in customer demand; costs related to
environmental clean-ups and liabilities; competitive activity and
pricing pressure; increases in energy prices; volatility of the
Company's stock price; dilutive effect on the Company's common
stockholders of potential future sales of the Company's common
stock held by our sponsor; substantial governance and other rights
held by our sponsor; breaches of our information system security
measures and damage to our major information management systems;
hazards that may cause personal injury or property damage, thereby
subjecting us to liabilities and possible losses, which may not be
covered by insurance; changes in laws or regulations, including the
Dodd–Frank Act; the timing and amount of our stock repurchases; and
costs and other effects of legal and administrative proceedings,
settlements, investigations, claims and other matters. See also the
"Risk Factors" in the Company's Annual Report on Form 10-K for the
fiscal year ended October 29, 2017,
which identifies other important factors, though not necessarily
all such factors, that could cause future outcomes to differ
materially from those set forth in the forward-looking statements.
The Company expressly disclaims any obligation to release publicly
any updates or revisions to these forward-looking statements,
whether as a result of new information, future events, or
otherwise.
About NCI Building Systems
NCI Building Systems, Inc. is one of North America's largest integrated
manufacturers and marketers of metal products for the
nonresidential construction industry. NCI is comprised of a family
of companies operating manufacturing facilities located in
the United States, Mexico, Canada and China, with additional sales and distribution
offices throughout the United
States and Canada.
Contact:
K. Darcey Matthews
Vice President, Investor Relations
281-897-7785
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SOURCE NCI Building Systems, Inc.