Jeld-Wen cuts spread on $1.61 billion term loan to Libor plus 375 bps

By Sara Rosenberg

New York, Oct. 13 – Jeld-Wen Inc. reduced pricing on its $1,614,000,000 billion covenant-light term loan (B1/B) due July 1, 2022 to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

Also, the step-down on the term loan was revised to Libor plus 350 bps at 3.5 times net leverage from Libor plus 375 bps at 4 times net leverage, the source said.

The debt is split between $1,239,000,000 in existing term loans and a $375 million incremental term loan due 2022.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months, the incremental piece has an original issue discount of 99.75 and a 25 bps amendment fee is being offered to existing term loan lenders.

Barclays and Bank of America Merrill Lynch are the bookrunners on the deal.

Commitments/consents were scheduled to be due at 5 p.m. ET on Thursday, accelerated from noon ET on Friday, the source added.

Proceeds will be used to consolidate the existing $763 million term loan due 2021 and $476 million term loan due 2022 into the single tranche due July 1, 2022, fund a distribution to shareholders and pay certain fees, expenses and other costs associated with the transaction.

Current pricing on the existing 2022 term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at 4 times net leverage and a 1% Libor floor.

Net first-lien leverage is 4.3 times and net total leverage is 4.4 times.

Jeld-Wen is a Klamath Falls, Ore.-based door and window manufacturer.

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