UPDATED: Onex Corp. and its affiliate's final deal to purchase a majority equity stake in Jeld-Wen increased by $25 million from the $864 million announced by Onex in Aug. to $889 million, according to The Oregonian.

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According to published reports, Jeld-Wen, a window and door manufacturer based in Klamath Falls, OR, is in the process of selling $448 million in high-yield bonds. The bond amount was lowered from the $575 million originally sought by the company in Aug. before delaying the sale due to a weak market.

The Herald and News reported that the lower bond issuance improves Jeld-Wen’s bond credit rating. Moody’s Investor Services says that it has assigned the company a B3 rating. However, despite the slight uptick in ratings, the bonds are still considered high risk. Standard and Poor’s Analyst Thomas Nadramia is quoted in the paper as saying the lower bond amount also “comes with a 12.875 percent interest rate, significantly higher than the 9.5 percent to 9.75 percent rate company officials initially discussed.”

The success of the bond sale is essential to securing the 58% majority ownership stake from Canadian-based Onex Corp.

Related:
Jeld-Wen could face bankruptcy
Huge JELD-WEN investor shift in works

Huge JELD-WEN investor shift in works

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