JELD-WEN amended its term loan credit agreement and asset-based revolving credit agreement. The amended $440 million term loan facility will mature December 2024, extended from July 2022, and will bear interest at a rate of LIBOR plus 175 to 200 basis points, determined based upon the company’s corporate credit rating, with a LIBOR floor of 0%. This compares favorably to the previous rate of LIBOR plus 275 to 300 basis points, determined based upon the company’s leverage ratio, with a LIBOR floor of 1%, under the existing term loan credit agreement. The amendments also modify certain other terms and provisions, including to provide for additional covenant flexibility and additional capacity under the incremental facility and to conform to certain terms and provisions of the senior notes offering.

The amended $300 million asset-based revolving credit facility will mature December 2022, extended from October 2019, and will bear interest primarily at a rate of LIBOR plus 125 to 175 basis points, determined based upon availability under the facility. This compares favorably to the previous rate of LIBOR plus 150 to 200 basis points under the existing ABL agreement. The amendments to the ABL agreement also make certain adjustments to the borrowing base and modify certain other terms and provisions, including to provide for additional covenant flexibility and additional flexibility under the incremental facility, and to conform to certain terms and provisions of the amended term loan credit agreement.

The company anticipates that the refinancing will establish a long-term capital structure that provides strategic, operating and financial flexibility. The company expects the refinancing to enhance the company’s ability to pursue future strategic growth initiatives such as acquisitions. As a result of the refinancing, the company expects one-time charges in the quarter ending December 31, 2017 of approximately $23 million to write off unamortized original issue discount and existing debt issuance costs, and approximately $5 million to unwind existing interest rate swap arrangements.

Based in Charlotte, NC, JELD-WEN, founded in 1960, is one of the world’s largest door and window manufacturers, operating more than 120 manufacturing facilities in 19 countries located primarily in North America, Europe and Australia.