We propose a multi-level CSI quantization and key reconciliation scheme for physical layer security. The noisy wireless channel estimates obtained by the users first run through a transformation, prior to the quantization step. This enables the definition of guard bands around the quantization boundaries, tailored for a specific efficiency and not compromising the uniformity required at the output of the quantizer. Our construction results in an better key disagreement and initial key generation rate trade-off when compared to other level-crossing quantization methods.