JELD-WEN Launches 2027 Note Exchange, $410M New Money Offer at 10.5% Coupon
JELD sits 49% above its 52-week low of $0.925 on light trading volume (0.4× avg).
Summary
JELD-WEN kicked off the exchange offer it flagged on September 29, swapping its $400 million of 4.875% 2027 notes for new first lien secured notes due 2031 and raising up to $410.2 million of new money. The new notes pay 10.500% in cash or 11.500% with up to 2.500% payable in kind — a steep step-up from the 4.875% it is retiring, and the price of pushing maturities out four years. Holders get $1,000 of new notes per $1,000 tendered early if they take their new-money allocation, $930 if they don't, and $880 after the November 10 early deadline; the offer expires November 27. Roughly 94.5% of the old notes and 72.2% of term loans are already committed, and a parallel Dutch auction lets term lenders sell at 86 cents on the dollar or roll into new notes at par. The company's own risk factors warn that failing to complete this deal could threaten its ability to continue as a going concern, so completion is the whole story here. Watch the November 10 early settlement and the November 27 expiration for whether the backstop has to absorb a shortfall.
At the time of this announcement, JELD was trading at $1.38 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $118M. The 52-week trading range was $0.93 to $4.90. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: PR Newswire.