#United States #New York #Cabinetworks Group #ACPRODUCTS HOLDINGS #Third Out Notes

Cabinetworks Group Concludes Successful Private Notes Exchange

In a recent announcement, Cabinetworks Group, recognized as one of the premier cabinet manufacturers in the United States, has successfully closed a private notes exchange through its affiliate, ACProducts Holdings Inc. This strategic move aims to enhance the company’s liquidity and financial stability in a competitive market segment. The exchange involved converting approximately 99% of existing unsecured notes due in 2029 into new senior secured notes due in 2032, thereby ensuring financial flexibility for future growth and operational needs.

The closed Private Notes Exchange is part of a broader financing initiative that Cabinetworks Group revealed earlier in May 2026. The company has managed to gather around $100 million in additional liquidity, a crucial step to manage accrued interests and related transaction fees. This enhanced liquidity will not only facilitate immediate financial needs but will also fortify the company's balance sheet, allowing for better capital management in the ensuing years.

Details of the Financing Transactions

Private Notes Exchange

The Private Notes Exchange allowed holders of the existing notes to participate with favorable terms until June 16, 2026. This move is significant as it aligns the interests of both the company and its creditors, ensuring a smooth transition to new financial instruments that promise better terms.

Holders who expressed interest before May 26, 2026, are expected to receive their third-out notes on the additional issuance date, set for May 29, 2026. It's noteworthy that these newly issued notes are designed to be fungible with the notes issued on May 18, 2026, thus simplifying the ownership structure of the debt instruments.

Secured Term Loans

In conjunction with the notes exchange, there was also an exchange aimed at existing term loans under the company’s senior secured term loan facility, extending the maturity of these loans to November 2031. This strategic shift includes moving away from short-term pressures and aligning financial obligations more favorably over a longer period.

The company's proactive measures in managing its debt portfolio indicate a clear focus on maintaining financial health and operational efficiency, setting a strong foundation for future opportunities in the cabinet manufacturing industry.

About Cabinetworks Group

Cabinetworks Group stands as the largest privately-held cabinet manufacturer in the United States. With a workforce exceeding 5,200 employees across 20 locations, including 16 manufacturing facilities, the company owns several well-regarded brands such as KraftMaid®, Medallion®, Merillat®, and Smart® Cabinetry. Cabinetworks Group distinguishes itself by delivering comprehensive cabinetry solutions that cater to the needs and visions of various customers through an extensive network of home centers and independent dealers.

Conclusion

The completion of the Private Notes Exchange signifies a significant milestone for Cabinetworks Group, providing the necessary financial ammunition to navigate the evolving landscape of the home improvement and construction markets. By prioritizing liquidity and enhancing financial flexibility, Cabinetworks is poised to not just survive but thrive in an increasingly competitive environment.