Headwaters Incorporated Announces Redemption of All Remaining Outstanding 16% Convertible Senior Subordinated Notes Due 2016

HEADWATERS INCORPORATED HW today announced completing redemption and repurchase of its remaining $9.2 million of outstanding 16% Convertible Senior Subordinated Notes due 2016 (“16% Notes”), as well as its remaining $1.0 million of outstanding 14.75% Convertible Senior Subordinated Notes due 2014 (“14.75% Notes”). This transaction eliminates all high coupon notes from Headwaters' balance sheet. Each of the 16% Notes was redeemed at 100% of the principal amount of such notes, plus accrued and unpaid interest to the date of redemption, for a total cash cost of $9.2 million. The 14.75% Notes were redeemed at approximately 114% of the principal amount of such notes, plus accrued and unpaid interest to the date of repurchase, for a total cash cost of $1.2 million.