ELD-WEN Holding, Inc. (“JELD-WEN” or the “Company”) (NYSE:JELD) today announced that the Company and certain of its subsidiaries, including JELD-WEN, Inc. (“JWI”), plan to enter into amendments to the credit agreements governing existing credit facilities, in conjunction with JWI’s concurrently announced offering of $800 million in aggregate principal amount of senior notes (the “Notes”).
The Company, JWI and certain of their subsidiaries plan to amend the existing term loan credit agreement (the “Term Loan Credit Agreement”) to, among other things, extend the maturity date from 2022 to 2024, decrease the interest rate applicable to the term loans outstanding thereunder, and modify certain other terms and provisions, including to provide for additional covenant flexibility and additional capacity under the incremental facility (the “Term Loan Amendment”). The Company, JWI and certain of their subsidiaries plan to amend the existing asset-based revolving credit agreement (the “ABL Credit Agreement”) to, among other things, extend the maturity date from 2019 to 2022 and modify certain other terms and provisions, including to provide for additional covenant flexibility and additional flexibility under the incremental facility (the “ABL Amendment” and together with the Term Loan Amendment, the “Amendments”).
As part of the Amendments, JWI intends to partially repay its outstanding term loan indebtedness under the Term Loan Credit Agreement using the net proceeds of the Notes offering.
The Company anticipates that the Amendments and concurrent offering of the Notes (together the “Refinancing”) will provide several benefits to the Company and will establish a long-term capital structure that provides strategic, operating, and financial flexibility. Expected benefits of the Refinancing include extending and staggering maturities of existing single-tranche debt, thereby reducing any near-term refinancing risk, as well as capitalizing on the Company’s improved credit profile and historically low interest rates in fixed-rate debt. In addition, the Company expects the Refinancing to significantly increase its secured debt capacity, thereby enhancing the Company’s ability to pursue future strategic growth initiatives such as acquisitions. The Company expects the Refinancing to have a neutral impact on its total debt and net debt leverage ratios.
There can be no assurance that the Refinancing will be completed, and if completed, whether it will be completed in whole or only in part.
This press release shall not constitute an offer to sell or the solicitation of an offer to purchase the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
JELD-WEN founded in 1960, is one of the world’s largest door and window manufacturers, operating over 120 manufacturing facilities in 19 countries located primarily in North America, Europe and Australia. Headquartered in Charlotte, North Carolina, JELD-WEN designs, produces and distributes an extensive range of interior and exterior doors, wood, vinyl and aluminum windows and related products for use in the new construction and repair and remodeling of residential homes and non-residential buildings. JELD-WEN is a recognized leader in manufacturing energy-efficient products and has been an ENERGY STAR® Partner since 1998. Our products are marketed globally under the JELD-WEN® brand, along with several market-leading regional brands such as Swedoor® and DANA® in Europe and Corinthian®, Stegbar®, and Trend® in Australia.
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements, including all statements regarding the Amendments and the offering of the Notes. Forward-looking statements are generally identified by our use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “seek”, or “should”, or the negative thereof or other variations thereon or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans, expectations, assumptions, estimates, and projections of our management. Although we believe that these statements are based on reasonable expectations, assumptions, estimates and projections, they are only predictions and involve known and unknown risks, many of which are beyond our control, that could cause actual outcomes and results to be materially different from those indicated in such statements.
Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including, but not limited to, the factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2016, and our Quarterly Reports on Form 10-Q, both filed with the Securities and Exchange Commission.
The forward-looking statements included in this press release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.