S&P rates Jeld-Wenn notes BB+

S&P said it assigned a BB+ and a 1 recovery rating to Jeld-Wen Inc.’s $250 million of senior secured notes.

Proceeds will be used to repay asset-based lending facility borrowings and for general corporate purposes.

S&P affirmed the ratings on the company’s term loan at BB+ with a 1 recovery rating, indicating an expectation of substantial recovery (90%-100%; rounded estimate 95%).

“We are affirming the BB- ratings on the unsecured debt and revising the recovery ratings to 4, indicating our expectation for average (30% to 50%; rounded estimate 30%) recovery in the event of a payment default, from 3,” S&P said in a press release. In a default scenario, there would be less for unsecured lenders to recover.

“The affirmed secured issue-level rating reflects the projected recovery for secured lenders in the event of a default scenario. With the new $250 million secured notes, the collateral value of the business in a default scenario would be distributed among a larger pool of secured lenders than before the transaction,” S&P said.

The company’s rating remains BB- and the outlook is negative.

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