Headwaters tightens OID on $350 million add-on term loan B to 99.75

By Sara Rosenberg

New York, Aug. 9 – Headwaters Inc. modified the original issue discount on its $350 million covenant-light add-on term loan B (B1/BB-) due March 2022 to 99.75 from 99.5, according to a market source.

The add-on term loan is still priced at Libor plus 300 basis points with a 1% Libor floor, in line with existing term loan pricing, and has 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on Wednesday, accelerated from noon ET on Aug. 11, the source said.

Proceeds will be used to fund the acquisition of Krestmark Industries LP for $240 million and to refinance 7¼% senior notes due 2019.

Headwaters is a South Jordan, Utah-based building products manufacturer. Krestmark is a Dallas-based manufacturer of vinyl windows.

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