Jeld-Wen readies launch of $440 million term loan B for Tuesday

By Angela McDaniels and Sara Rosenberg

Tacoma, Wash., Dec. 4 – Jeld-Wen Inc. is scheduled to hold a lender meeting on Tuesday to launch a $440 million term loan B due December 2024, according to a market source.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Barclays and J.P. Morgan Securities LLC are the leads on the deal.

Commitments are due at noon ET on Thursday, the source said.

Proceeds will be used to help refinance an existing term loan so as to extend the maturity date and reduce the interest rates.

The company also plans to seek amendments to its asset-based revolving credit facility to extend the maturity date to December 2022, reduce the interest rates for amounts drawn and make certain adjustments to the borrowing base and collateral.

For both the term loan and revolver, the company wants amendments to provide for additional covenant flexibility and additional flexibility under the incremental facility.

Wells Fargo is the administrative agent for the revolver.

The company plans to price $400 million of senior notes due 2025 and $400 million of senior notes due 2027 and use the proceeds, together with cash on hand, to partially repay its outstanding debt under the term loan, bringing the balance down to $440 million, and for general corporate purposes.

Following the refinancing, the company expects to have no revolving borrowings outstanding.

If the company completes the refinancing transactions, it plans to terminate its existing interest rate swaps and enter into new interest rate swaps that involve the exchange of floating-rate interest payments for fixed-rate interest payments in order to reduce interest rate volatility.

The company said that assuming the credit facilities are fully drawn, each quarter-point increase in interest rates on its debt service obligations on any variable-rate debt would result in a $1.85 million increase in total annual interest expense.

Jeld-Wen is a door and window manufacturer based in Charlotte, N.C.

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