By Paul A. Harris
Portland, Ore., Dec. 5 - Headwaters Inc. priced a $150 million issue of five-year senior notes (Caa2/CCC+) at par to yield 7¼% on Thursday, according to a company press release.
The yield printed at the tight end of the 7¼% to 7½% yield talk, according to a market source.
Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the Rule 144A and Regulation S deal.
The South Jordan, Utah-based construction materials and services provider plans to use the proceeds to acquire an 80% equity interest in the business of Roof Tile, Inc., with any additional proceeds to fund future acquisitions and for general corporate purposes, including capital expenditures and debt repayment.
| Issuer: | Headwaters Inc.
|
| Amount: | $150 million
|
| Maturity: | 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc.
|
| Co-managers: | Avondale Partners, LLC, Canaccord Genuity Inc., Stifel, Nicolaus & Co. Inc. Wedbush Securities Inc.
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Call protection: | Two years
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Quick-to-market |
|
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