Press Releases

02.03.09Masonite International Inc. Extends Forbearance Agreements with Lenders and with Holders of a Majority of Its Notes

 

MISSISSAUGA, ON, February 3, 2009 – Masonite International Inc. (the “Company”) today announced that it has entered into a further extension, to February 9, 2009, of the forbearance agreement dated September 16, 2008, with its bank lenders. Masonite also has entered into a further extension, to February 13, 2009, of the separate forbearance agreement it previously reached with holders of a majority of the senior subordinated notes due 2015 issued by two of the Company’s subsidiaries. Masonite continues to pursue opportunities to develop an appropriate capital structure to support its long-term strategic plan and business objectives.

As previously announced, as a result of its financial performance for the quarters ended June 30, September 30, and, based on preliminary financial results for the quarter ended December 31, 2008, Masonite was not in compliance as of such dates with certain financial covenants contained in its credit facility, which constituted an event of default under the credit facility. The financial covenants relate to EBITDA metrics and reflect the challenging conditions in the U.S. housing industry.

For a copy of the extended forbearance agreements with the lenders and with the note holders, please see Masonite International Inc.'s report on Form 6-K dated February 3, 2009, filed with the Securities and Exchange Commission and available at www.sec.gov.

This press release and Form 6-K are also available within the “News & Events” section of the Company’s website at www.masonite.com.

Masonite International is a leading global manufacturer of residential and commercial doors, committed to providing the highest value door products to our customers in more than 70 countries around the world.

Forward-looking Statements

This press release and other written reports and oral statements made by the Company may include forward-looking statements, all of which are subject to risks and uncertainties. One can identify these forward-looking statements by their use of words such as "may", "might", "expects", "plans", "would", "estimates", "intends", "forecasts", "projects" and other words of similar meaning, or by the fact that they do not relate strictly to historical or current facts. These statements are likely to address, but may not be limited to, and are subject to factors such as the Company’s strategies relating to growth and cost containment, including facility closures; the Company’s negotiations with lenders under its senior secured credit agreement relating to an acceptable amendment and waiver of that agreement; actions that may be taken by its noteholders including those holders that have not executed the forbearance agreement, the Company's future operations; and ongoing conditions in the door manufacturing and housing industries. Readers must carefully consider any such statements and should understand that many factors could cause actual results and developments to differ materially from the Company’s forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other known and unknown risks and uncertainties, including: general economic, market and business conditions; levels of construction and renovation activity; competition; financing risks; ability to manage expanding operations; commitments; new services; retention of key management personnel; environmental and other government regulation; and other factors disclosed by the Company in its filings from time to time with the United States Securities and Exchange Commission.

No forward-looking statement can be guaranteed and actual future results may vary materially. Therefore, we caution you not to place undue reliance on our forward-looking statements. The Company disclaims any responsibility to update these forward-looking statements, whether as a result of new information, future events or otherwise.