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Jeld-Wen – Onex Corp Deal in Jeopardy?
5 years, 10 months ago Posted in: Manufacturers News 0

Jeld-Wen postpones $575 million junk-bond sale, putting Onex rescue deal in doubt

SOURCE: Richard ReadThe Oregonian

Jeld-Wen Inc., Oregon’s largest privately owned business, has postponed attempts to sell $575 million in junk bonds necessary for the Klamath Falls company to be rescued by a Canadian investment firm.

The ailing window-and-door maker, which employs 2,500 in Oregon, halted the offering as U.S. company bond sales fell 40 percent this week amid signs of a sputtering economy.

The $864 million question is whether the postponement derails a bailout initiative by Toronto-based Onex Corp., which plans to take a majority stake in Jeld-Wen by investing that amount – a deal predicated on the bond sale. Spokeswomen for Jeld-Wen and Onex did not immediately return phone calls from a reporter Friday morning.

In a story Friday about declining bond sales, Bloomberg News reported Jeld-Wen managers had decided to wait on selling bonds due to “soft” markets. The story quoted Teri Cline, a Jeld-Wen spokeswoman, as saying, “We’re just delaying it for a short period of time until we think it is more beneficial.”

The housing-market crash clobbered Jeld-Wen, which had to close plants, lay off workers, slash spending and sell off resort properties and other assets. The company employs 20,000 in more than 20 countries.

Chief executive Rod Wendt led a multi-city road show recently to market the bonds. He recently stepped down as president of Jeld-Wen as Onex’s Philip Orsino took the post, accelerating terms of the deal.

 Richard Read, Twitter:@ReadOregonian

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