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.
K. Darcey Matthews
Vice President, Investor Relations
SOURCE NCI Building Systems, Inc.