CHARLOTTE — JELD-WEN Holding Inc. signed an agreement with holders of most of its 2027 notes and 2028 term loans that would push those maturities to 2031 and provide $135 million in new debt financing if the planned transactions close.
The Charlotte-based window and door manufacturer said in a Sept. 29 filing that the commitment and consent letter covers holders of about 94.5% of its 4.875% senior notes due 2027 and about 72.2% of its replacement term loans due 2028. Those holders agreed to support exchange offers and related consent solicitations.
Under the planned exchange, participating 2027 noteholders that provide backstop support or buy new-money notes could exchange at face value. Other participating noteholders would receive 93% of face value. Term lenders could exchange at face value or have their loans repaid, repurchased or otherwise discharged at 86%.
The new first-lien notes would mature five years after closing and carry either 10.5% annual cash interest or 11.5% annual interest, with as much as 2.5 percentage points added to principal instead of paid in cash. The new debt would be secured by first-priority interests in substantially all assets of the issuer and guarantors, subject to customary exclusions.
Certain noteholders agreed to backstop as much as $410.2 million of new first-lien notes if other participants do not fund the offering. JELD-WEN said $135 million of new-money proceeds would cover transaction fees, premiums, costs and expenses and support general corporate purposes. The balance, up to $275.2 million, could fund discounted repayment of 2028 term loans.
The transaction has not closed. JELD-WEN expects to begin the exchange offers in the coming weeks, but completion depends on definitive debt documents, amendments to the existing note indenture and credit agreement, and other conditions. The commitment letter terminates 60 days after signing unless it is extended or the transactions close sooner.
The agreement addresses a near-term refinancing challenge for one of North Carolina’s major publicly traded manufacturers. JELD-WEN is headquartered at 2645 Silver Crescent Drive in Charlotte and operates 61 manufacturing facilities across North America and Europe, according to materials filed with the agreement.
The refinancing comes as U.S. companies face a broader rise in debt maturities and borrowing costs. Reuters reported that about $4.3 trillion of nonfinancial corporate bonds mature from 2027 through 2031, while higher Treasury yields are pressuring companies that borrowed when rates were lower.
If completed, JELD-WEN’s plan would extend its nearest major maturities and add operating liquidity. It would also replace lower-coupon unsecured debt with more expensive first-lien financing, increasing the importance of the company’s cash flow and operating recovery.