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

By Sara Rosenberg

New York, Dec. 7 – Jeld-Wen Inc. firmed pricing on its $440 million covenant-light term loan B (Ba2/BB+) due December 2024 at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.

In addition, the issue price on the term loan was tightened to par from talk in the range of 99.5 to 99.75, the source said.

The term loan still has a 25 bps step-down at Ba2/BB corporate ratings, a 0% Libor floor and 101 soft call protection for six months.

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 were scheduled to be due at 4 p.m. ET on Thursday, the source added.

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 $800 million in notes 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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