Jeld-Wen launches term loan B repricing at Libor plus 300 bps

By Sara Rosenberg

New York, Feb. 23 – Jeld-Wen Inc. launched on Thursday a repricing of its $1,236,000,000 covenant-light term loan due July 1, 2022 with price talk of Libor plus 300 basis points with a step-down to Libor plus 275 bps when total net leverage is less than 2.25 times, a 1% Libor floor and a par issue price, according to a market source.

The repriced term loan includes 101 soft call protection for six months, the source said.

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

The term loan is being repriced from Libor plus 350 bps with a step-up to Libor plus 375 bps when total net leverage is greater than 3.5 times and a 1% Libor floor.

Net total leverage is 2.65 times.

Along with the repricing, the company is seeking to remove the existing $75 million cap on cash netting for ratio-testing purposes.

Commitments and amendment consents are due by 1 p.m. ET on Tuesday, the source continued.

The transaction is occurring in the context of the company’s initial public offering of common stock that closed on Feb. 1, of which $375 million of net proceeds were used to repay term loans.

Under the definition of a repricing transaction in the existing credit agreement, the current 101 soft call protection, effective until May 1, does not apply and therefore no prepayment premium will be offered to existing lenders, the source added.

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

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