Springs Window Creditors Organize as Housing Crunch Hurts Demand

(Bloomberg) -- Dueling groups of creditors to Clearlake Capital Group-backed Springs Window Fashions have organized with law firms as the company struggles with a more than $2 billion debt load, according to people to knowledge of the situation. 

A group of creditors organized with Wachtell Lipton Rosen & Katz is considering providing the supplier of window blinds and shades with a new super-priority loan, said the people, who asked not to be identified discussing a private matter. Firms that aren’t part of the potential financing would see their holdings pushed back in the repayment line, they said.

Details of the plan aren’t final and could change, they added. Another group is working with Davis Polk & Wardwell, the people said. 

A representative for Clearlake declined to comment, while messages left with Springs Window, Wachtell and Davis Polk were not returned. 

Springs Window has a $1.625 billion first-lien term loan that comes due in 2028 and $625 million of unsecured notes maturing in 2029, according to data compiled by Bloomberg. The company has struggled to manage its debt load as its costs rose and a drop in home sales reduced demand for its products.  

The Middleton, Wisconsin-based company took on the debt as part of Clearlake’s 2021 leveraged buyout. The loan is quoted at around 85 cents on the dollar, according to data compiled by Bloomberg. Its bonds traded Monday at 52.75 cents, according to Trace. 

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