Headwaters marketing $280 million five-year senior secured notes

By Paul A. Harris

St. Louis, Oct. 13 - Headwaters Inc. will market a $280 million offering of five-year senior secured notes (expected B2/confirmed B+) for the rest of this week, according to a market source.

The Rule 144A and Regulation S deal, which is being led by joint bookrunners Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch, is expected to price early in the Oct. 19 week.

The notes will come with three years of call protection.

Proceeds will be used to repay bank debt, as well as to fund the tender for the company's 2 7/8% convertible notes and for general corporate purposes.

The offering is contingent upon the entry into a new $70 million four-year senior secured first-lien asset-based revolving credit facility by certain direct wholly owned subsidiaries of the company as borrowers and the company as a guarantor.

Headwaters is a South Jordan, Utah-based provider of products, technologies and services to the energy, construction and home improvement industries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.