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JELD-WEN prices $350 million senior notes offering

EditorBrando Bricchi
Published 08/08/2024, 22:46
JELD
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CHARLOTTE, N.C. - JELD-WEN (NYSE:JELD) Holding, Inc. (NYSE: JELD), a global manufacturer and distributor of building products, announced the pricing of a $350 million offering of 7.00% senior unsecured notes due 2032. The private placement, exempt from registration under the Securities Act of 1933, is set to fund the redemption of outstanding 4.625% Senior Notes due 2025 and partially repay borrowings under a term loan facility.

The offering is expected to close on August 22, 2024, subject to customary closing conditions. The notes will be guaranteed by JELD-WEN, Inc., the main operating subsidiary of JELD-WEN, and by each of its domestic subsidiaries that guarantee indebtedness under its term loan facility.

The notes were offered to qualified institutional buyers in accordance with Rule 144A and to certain non-U.S. persons in offshore transactions under Regulation S. They will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the U.S. without registration or an applicable exemption.

JELD-WEN, headquartered in Charlotte, North Carolina, operates in 15 countries and employs approximately 18,000 associates. Its portfolio of brands includes JELD-WEN® worldwide, LaCantina® and VPI™ in North America, and Swedoor® and DANA® in Europe.

The company's forward-looking statements in the press release are based on current plans and expectations and are subject to risks that could affect future results, as detailed in their annual report and filings with the U.S. Securities and Exchange Commission.

This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to purchase the notes.

In other recent news, JELD-WEN Holding, Inc. has announced a multi-million senior notes offering. The company intends to offer $350 million of senior unsecured notes due in 2032. The proceeds will be used to redeem its 4.625% Senior Notes due in 2025 and to partially repay outstanding borrowings under its term loan facility. The offering is subject to market conditions and will be available to qualified institutional buyers, as well as to certain non-U.S. persons in offshore transactions.

In parallel developments, JELD-WEN has maintained its financial guidance for the year 2024, despite facing softer demand in North America and Europe. The company is on track to deliver $100 million in cost savings for the year, with a projected operating cash flow of approximately $200 million. JELD-WEN also announced the closure of two facilities, expected to contribute to annual EBITDA savings of at least $11 million. The company anticipates revenue between $3.9 billion and $4.1 billion for 2024, with adjusted EBITDA guidance set at $340 million to $380 million. These are the latest updates in the company's ongoing transformation journey.

InvestingPro Insights

As JELD-WEN Holding, Inc. navigates its financial restructuring through the issuance of senior unsecured notes, the company's market performance and analyst expectations provide a broader context for investors. With a market capitalization of approximately $1.2 billion, JELD-WEN's recent financial data reveal some challenges and potential areas of growth.

One of the key InvestingPro Tips indicates that analysts are expecting JELD-WEN's net income to grow this year. This potential uptick in profitability contrasts with the company's performance over the last twelve months, where it was not profitable, as reflected in a negative P/E ratio of -32.68. The adjusted P/E ratio for the last twelve months as of Q2 2024 stands at an even more significant negative figure of -1214.37, suggesting that earnings have been under considerable pressure.

Despite the challenges, JELD-WEN's liquid assets are reported to exceed its short-term obligations, offering some financial stability in the near term. However, the company's stock has experienced volatility, with a notable 9.41% drop in price total return over the last week and a 26.14% drop over the last six months. This volatility is an essential factor for investors to consider, especially in light of the company's latest financial maneuver.

For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available on InvestingPro, including insights on earnings revisions by analysts and the company's valuation multiples. With the next earnings date set for November 5, 2024, these tips could provide valuable guidance for those monitoring JELD-WEN's financial progress.

For those interested in exploring these insights further, there are a total of 9 InvestingPro Tips available for JELD-WEN, which can be accessed through the dedicated InvestingPro platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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