(RTTNews) - Tuesday, NCI Building Systems Inc. (NCS: News ) announced the completion of a $250 million equity investment in the company by private equity firm Clayton, Dubilier & Rice, Inc. With the investment, CD&R-managed funds will get 68.5% ownership in the company through the newly issued preferred stock, on an as-converted basis.

Norman Chambers, president and chief executive officer of NCI said, "We have gained the resources to ride out the economic downturn and re-start our growth strategy. CD&R is widely respected as a long-term investor and business builder and brings both financial and operating resources to NCI."

The Houston, Texas- based company noted that following the deal, several changes will be made into its board of directors. Among other changes, as previously-reported, Nathan Sleeper, the CD&R partner who led the transaction, will be appointed to the board and James Berges, a CD&R Operating Partner, will be designated Chairman of the Executive Committee. Other directors are expected to be added in the near future.

In addition, the board will have at least two independent directors not appointed by or affiliated with the CD&R Fund. Chambers will remain as Chairman, President and CEO.

NCI, which manufactures metal products for the non-residential building industry in North America, also noted that it has completed acquiring its existing convertible notes in exchange for a combination of $500 in cash and 390 shares of NCI common stock for each $1,000 of convertible notes.
Further, the company said that it re-payed approximately $143 million of its debt while modifying terms and maturity of the remaining $150 million. NCI also entered into a $125 million asset-based revolving credit facility, simultaneous with the closing of the CD&R investment.

NCI noted that with the refinancing complete, it would invest more into technology and systems to support its builder network, develop new products and pursue selective acquisitions.

NCS is currently trading $2.29 down $0.22 or 8.76% on a volume of 6.42 million shares on the NYSE.

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by RTT Staff Writer

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