Jeld-Wen launches $440 million term loan B at Libor plus 200-225 bps

By Sara Rosenberg

New York, Dec. 5 – Jeld-Wen Inc. launched on Tuesday its $440 million covenant-light term loan B (Ba2/BB+) due December 2024 with price talk of Libor plus 200 basis points to 225 bps with a 25 bps step-down at Ba2/BB corporate ratings, a 0% Libor floor and an original issue discount of 99.5 to 99.75, according to a market source.

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

Current corporate ratings are Ba3/BB-.

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.

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

Other funds for the term loan refinancing will come from the issuance of $400 million of senior notes due 2025 and $400 million of senior notes due 2027, and from cash on hand.

The company is also looking to amend 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.

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

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