Headwaters Shares Drop On Credit Change Proposal

WASHINGTON (AP) — Shares of Headwaters Inc. fell Monday after the energy and construction materials supplier proposed amendments to its senior credit agreement.

South Jordan, Utah-based Headwaters said Friday that this week it would launch the proposed amendment, which would allow it to replace its revolving credit facility and amend certain covenants.

The proposal will require consent from a majority of Headwaters' lenders. The company said it expects to offer a fee to lenders that agree to the changes, and that the amended senior security credit facility will have a higher interest rate.

Shares of Headwaters fell 46 cents, or 9.3 percent, to $4.50 in late morning trading Monday. The stock has ranged from $1.22 to $16.40 over the past year.