By Paul A. Harris
St. Louis, Oct. 20 - Headwaters Inc. priced an upsized $328.25 million issue of 11 3/8% five-year senior secured notes (expected B2/confirmed B+) at 99.067 to yield 11 5/8% on Tuesday, according to an informed source.
The yield printed at the tight end of the 11¾% area yield talk. The issue price came rich to the 2 to 3 points of original issue discount talk.
The size was increased from $280 million.
Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch were joint bookrunners.
Proceeds will be used to repay bank debt, to fund the tender for the company's 2 7/8% convertible notes and for general corporate purposes.
Headwaters is a South Jordan, Utah-based provider of products, technologies and services to the energy, construction and home improvement industries.
| Issuer: | Headwaters Inc.
|
| Face amount: | $328.25 million (increased from $280 million)
|
| Proceeds: | $325.187 million
|
| Maturity: | Nov. 1, 2014
|
| Securities: | Senior secured notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., Bank of America Merrill Lynch
|
| Coupon: | 11 3/8%
|
| Price: | 99.067
|
| Yield: | 11 5/8%
|
| Spread: | 936 bps
|
| Call protection: | Three years
|
| Trade date: | Oct. 20
|
| Settlement date: | Oct. 27
|
| Ratings: | Moody's B2 (expected)
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 11¾% area with 2to 3 points of OID
|
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