Jeld-Wen has agreed with major creditor groups on an out-of-court debt exchange that would push its 2027 notes and 2028 term loans to 2031 and raise $135m of new money financing.
The window and door-maker announced on the morning of 29 September a deal backed by holders of about 94.5% of the notes and 72.2% of the loans. Under the terms agreed, the company will exchange its $400m in 4.875% senior unsecured notes due 2027 and $374m in term loans due 2028 for new 10.5% cash or 11.5% including up to 2.5% PIK first lien notes due 2031.
Only 2027 noteholders that backstop or participate in the new money offering (details below) can exchange into the new first lien notes at par, while other noteholders will receive 93 cents on the dollar. 2028 term lenders can choose to either exchange at par into the new first lien notes or can take a cash payment at 86 cents on the dollar.
The company will also launch consent solicitations to subordinate any holdouts and strip them of protections under the credit agreement and, in the case of the 2027 notes, amend “covenants regarding mergers and consolidations” and other provisions including those “relating...
