8-K: Cornerstone Building Brands Reaches Recapitalization Agreement Backed by 54% of Non-Asset-Based Debt Holders

Cornerstone Building Brands reached a non-binding agreement in principle with an ad hoc group of creditors holding approximately 54% of its outstanding non-asset-based debt on a comprehensive recapitalization intended to enhance liquidity, reduce debt and strengthen its capital structure. The agreement also has the support of CD&R, the existing equity sponsor, which is expected to retain a significant equity ownership interest. Separately, the company secured a new $500 million term loan financing led by Monarch Alternative Capital LP to strengthen near-term liquidity and financial flexibility. The agreement remains subject to definitive documentation and customary closing conditions, with no assurance a transaction will be consummated.

Cornerstone Building Brands reached a non-binding agreement in principle with an ad hoc group of creditors holding approximately 54% of its outstanding non-asset-based debt on a comprehensive recapita