Headwaters buys back $7.5 million of 14.75% convertibles due 2014

By Toni Weeks

San Diego, Aug. 12 - Headwaters Inc. said it repurchased and canceled $7.5 million of its 14.75% convertible senior subordinated notes due 2014 for $8.2 million in an open market transaction.

Following the repurchase, the outstanding amount of convertibles is roughly $13 million.

"We continue to repurchase our high-rate convertible senior subordinated notes to strengthen our balance sheet and future cash flows of Headwaters," chief financial officer Don P. Newman said in a press release. "Over the last three months, we have repurchased approximately $14.4 million of our 14.75% notes, reducing our annual cash interest expense by approximately $2.1 million.

"The company's liquidity (including cash on hand and availability under its ABL revolver) after the repurchase is approximately $90 million."

Headwaters provides construction materials, technologies and services to the heavy construction materials, light building products and energy technology industries and is based in South Jordan, Utah.

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