Headwaters scraps consent bid for $400 million 7 5/8% notes due 2019

By Susanna Moon

Chicago, Nov. 20 - Headwaters Inc. said it terminated the consent solicitation to amend its $400 million of outstanding 7 5/8% senior secured notes due 2019.

No reason for the termination was given in the company's press release on Wednesday.

The company previously said it was seeking to modify restrictive covenants in the note indenture.

The proposed amendments required the consent from holders of at least 66 2/3% principal amount of outstanding notes.

The consent payment will be $15.00 per $1,000 principal amount of notes.

The consent solicitation was scheduled to end at 5 p.m. ET on Nov. 20. The solicitation began Nov. 12.

D.F. King & Co., Inc. (888 644-6071 or 212 269-5550 collect) was the information and tabulation agent. Deutsche Bank Securities Inc. (855 287-1922) was the solicitation agent.

"The amendments increase our senior secured borrowing capacity from 3.5 to 4.5 times consolidated cash flow, as defined in the indenture," Don P. Newman, Headwaters' chief financial officer, said in a previous company press release.

"These changes provide us flexibility to maintain a balanced capital structure, while delivering value to our stockholders and taking advantage of favorable debt markets."

Newman also noted that the company recently amended its ABL revolver, extending the maturity to October 2018 from October 2014, improving pricing, adding more flexibility and maintaining its existing revolver borrowing capacity.

Headwaters is a South Jordan, Utah-based manufacturer of light building products and heavy construction materials.

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