JELD-WEN strikes deal to push out maturities, raise $140M
What's the deal? JELD-WEN, the Charlotte-based door and window maker, has agreed with a group of its lenders and noteholders to extend its near-term debt maturities and raise $135 million of new debt financing. The agreement pushes the maturities of its 4.875% Senior Notes due 2027 and its 2028 term loans out to 2031.
Who's on board? The commitment and consent letter represents about 94.5% of the 2027 Notes and roughly 72.2% of the 2028 Term Loans. Those parties agreed to refinance or exchange the existing debt for new first lien debt maturing in 2031.
Why now? Addressing looming maturities has been a priority for the company, which will soon launch exchange offers to holders of the affected notes and loans to put the transactions in place.
What's the endgame? The deal buys runway and fresh capital to fund operations and the company's turnaround plan. "This agreement is an important step forward," said chief executive officer William J. Christensen, adding that the focus remains on "serving our customers, improving productivity, reducing costs and managing cash with discipline."
JELD-WEN (NYSE: JELD) designs, manufactures, and distributes interior and exterior doors, windows, and related building products for new construction and remodeling. It operates in 14 countries across North America and Europe and employs about 13,900 people, with brands including LaCantinaDealroom has a profile for this one. Try Dealroom → and VPIDealroom has a profile for this one. Try Dealroom → in North America and SwedoorDealroom has a profile for this one. Try Dealroom → and DANA in Europe.
Who advised? Kirkland & Ellis is legal counsel and EvercoreDealroom has a profile for this one. Try Dealroom → financial advisor to JELD-WEN. Davis Polk & Wardwell and Houlihan LokeyDealroom has a profile for this one. Try Dealroom → advised certain noteholders, while Gibson, Dunn & Crutcher and Moelis & Company advised certain term loan lenders.
The signal: The refinancing is a defensive move typical of leveraged manufacturers managing balance sheets in a tighter credit market. By securing broad creditor support before commencing exchange offers, JELD-WEN reduces execution risk and trades near-term pressure for a longer, more flexible runway to 2031.
Read more: marketscreener.com
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