Headwaters Clears The Way for New ABL
June 30, 2009
South Jordan, Utah-based Headwaters has amended its credit facility, allowing it to, among other things, secure a new $30 million asset-backed loan. The ABL replaces a $30 million revolver. The facility also includes a $197 million term loan.
In addition to allowing Headwaters to secure the new ABL, the amendment allows the company to increase its debt-to-Ebitda ratio, giving it a cushion during the recession.
“We believe that the amendment resolves Headwaters' current covenant issues and provides an opportunity to put in place an ABL facility to satisfy our liquidity needs,” Steven Stewart, Headwaters’ CFO, said in a statement.” He said the company is looking to put the ABL facility “in place” over the next 60 days.
Headwaters, a holding company which owns interests in the construction materials, coal combustion products and energy industries, will pay senior lenders a fee of approximately $1.3 million and will pay ABL lenders an additional fee of $500,000 once the ABL closes.
Morgan Stanley acted as the administrative agent.
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