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JELD-WEN to redeem senior notes due 2025

EditorTanya Mishra
Published 08/14/2024, 08:49 AM
JELD
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JELD-WEN (NYSE:JELD) Holding, Inc. (NYSE: JELD) has announced that its subsidiary, JELD-WEN, Inc., plans to redeem all of its outstanding 4.625% Senior Notes due 2025. The redemption is conditional upon the completion of a notes offering that was made public on August 8, 2024. Wilmington Trust, National Association, the trustee under the indenture, has issued a conditional notice of redemption to the current record holders of the Notes.

The redemption of these Notes is set to occur on September 13, 2024, provided that the notes offering is successfully completed. The Notes will be redeemed at a price of $1,000 per $1,000 principal amount, alongside accrued and unpaid interest up to, but excluding, the Redemption Date.

Payment for the redemption will be executed through the facilities of The Depository Trust Company. This move by JELD-WEN, a global leader in the design, manufacturing, and distribution of high-performance building products, including interior and exterior doors and windows, is part of its financial management strategy.

The company, headquartered in Charlotte, North Carolina, operates multiple facilities across North America and Europe and employs about 18,000 associates. JELD-WEN's family of brands comprises JELD-WEN® worldwide, LaCantina® and VPI™ in North America, and Swedoor® and DANA® in Europe.

The announcement contains forward-looking statements regarding the notes offering, which are subject to risks and uncertainties, including those detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the U.S. Securities and Exchange Commission.

JELD-WEN Holding, Inc., a global manufacturer and distributor of building products, has priced a $350 million offering of 7.00% senior unsecured notes due 2032. The proceeds from this offering are set to fund the redemption of outstanding 4.625% Senior Notes due 2025 and partially repay borrowings under a term loan facility. This development follows the company's announcement of a multi-million senior notes offering.

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. (NYSE: JELD) takes strategic steps to manage its finances by redeeming its 4.625% Senior Notes due 2025, investors and stakeholders are closely monitoring the company's performance metrics and market sentiment. According to the latest data from InvestingPro, JELD-WEN has a market capitalization of approximately $1.2 billion, showcasing its substantial presence in the building products industry.

InvestingPro Tips suggest that while analysts have revised their earnings expectations downwards for the upcoming period, there is an anticipation of net income growth this year for JELD-WEN. This could indicate a potential turnaround in the company's profitability, aligning with the company's financial management efforts. Moreover, it's worth noting that JELD-WEN's stock price has experienced significant volatility, with a 6-month price total return showing a substantial decline of 26.52%.

From a valuation perspective, JELD-WEN's price-to-earnings (P/E) ratio stands at a negative -32.32, reflecting challenges in recent profitability. However, the company's liquid assets surpass its short-term obligations, which may provide some financial stability and flexibility. While JELD-WEN does not pay a dividend, indicating a reinvestment of earnings back into the company, investors interested in the company's detailed financial outlook can find additional InvestingPro Tips, including 8 more insights, at InvestingPro.

As the company navigates through its financial management strategy, these InvestingPro insights offer a deeper understanding of JELD-WEN's current financial health and future expectations, which could be pivotal for investors making informed decisions in light of the recent announcement.

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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