Headwaters redeems $47.25 million of 7¼% notes due 2019 with cash

By Susanna Moon

Chicago, July 5 – Headwaters Inc. said it redeemed $47.25 million of its 7¼% senior notes due 2019.

The redemption was funded with balance sheet cash, effective July 1, and lowers the company’s senior unsecured debt to $99 million, according to a company press release.

Since 2014, Headwaters has made debt repayments of $112.7 million, including repaying its senior secured term loan by $4.3 million.

As of July 1, Headwaters’ total debt was $519.8 million, consisting of $420.8 million of senior term debt and $99 million of senior unsecured debt, the release noted.

“We have reduced our cash interest expense by over 50% from its peak of $52 million,” Don P. Newman, Headwaters’ chief financial officer, said in the press release.

“Through the disciplined use of debt, we have successfully completed multiple bolt-on acquisitions, but we have acted prudently to strengthen our balance sheet through overall debt reductions.”

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

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