This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Headwaters Incorporated Announces The Exchange Of $49.8 Million Of 2014 Convertible Notes For 8.75% Convertible Senior Subordinated Notes Maturing February 2016

HEADWATERS INCORPORATED (NYSE: HW) , a building products company dedicated to improving lives through innovative advancements in construction materials, today announced completion of a privately negotiated exchange of its 2.50% Convertible Senior Subordinated Notes due 2014 with a face value of $49.8 million, for 8.75% Convertible Senior Subordinated Notes due 2016 with a face value of $49.8 million (the “New Notes”). In addition, a premium totaling less than $0.6 million was paid in conjunction with the exchange. In effect, the exchange extends the maturity date of $49.8 million of debt for two years, creating a maturity schedule that corresponds to the generation of free cash flow available for repayments.

The New Notes will accrue interest at a rate of 8.75% per annum, with interest payable in cash semi-annually in arrears on February 1 and August 1 of each year, beginning on August 1, 2012. The maturity date of the New Notes is February 1, 2016.

“We are pleased with the successful effort to exchange nearly $50 million of notes which would otherwise have matured in early calendar 2014, and extend those maturities by two years,” stated Don P. Newman, Headwaters’ Chief Financial Officer. “The maturity extension reduces Headwaters’ refinancing risk and creates a debt maturity profile that better fits the cash generation profile of the business should recovery in end markets be slow to develop.”

As a result of the above exchange and previously announced redemptions and repurchases of its 16% and 14.75% Convertible Senior Subordinated Notes, Headwaters’ debt structure is now as follows:

Issue   Outstanding Par Value

($ millions)

  Maturity Date
7 5/8% Senior Secured Notes $400.0 April 2019
2.5% Convertible Senior Subordinated Notes $63.6 February 2014
8.75% Convertible Senior Subordinated Notes $49.8 February 2016
Asset based loan facility ($70 million limit, with a rate of LIBOR plus 2.75% if drawn) $0.0 October 2014
Total Gross Debt (par value) $513.4  
 

“Including the recent redemptions and repayments, Headwaters has retired approximately $30 million of subordinated debt during its fiscal 2012, including over $10 million in the third fiscal quarter,” added Mr. Newman. “We believe that we have resolved our capital structure issues, and have a structure well matched to our cash flow.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs