424B3 1 form424b3032405.txt PROSPECTUS SUPPLEMENT NO. 1 Registration No. 333-117492 Filed Pursuant to Rule 424(b)(3) PROSPECTUS SUPPLEMENT NO. 1 --------------------------- (TO PROSPECTUS DATED JANUARY 7, 2005) $172,500,000 Headwaters Incorporated 2 7/8% Convertible Senior Subordinated Notes due 2016 and Shares of Common Stock Issuable upon Conversion of the Notes ---------------------- This prospectus supplement relates to the resale by the holders of 2 7/8% Convertible Senior Subordinated Notes due 2016 of Headwaters Incorporated and the shares of common stock issuable upon conversion of the notes. This prospectus supplement should be read in conjunction with the prospectus dated January 7, 2005, which is to be delivered with this prospectus supplement. The information in the table appearing under the heading "Selling Securityholders" in the prospectus is supplemented and superseded in part by the information appearing in the table below:
---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Principal Amount Number of of Notes Number of Shares Shares of Percentage of Beneficially Percentage of of Common Stock Common Stock Common Stock Owned that may be Notes Beneficially that may be Outstanding (%) Name Offered ($) Outstanding (%) Owned Offered (1) (2) (14) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Argent Classic Convertible 1,840,000 1.1 61,333 61,333 * Arbitrage Fund (Bermuda) Ltd. (3) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Argent Classic Convertible 410,000 * 13,667 13,667 * Arbitrage Fund L.P. (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Argent Classic Convertible 90,000 * 3,000 3,000 * Arbitrage Fund II, L.P. (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Argent LowLev Convertible 230,000 * 7,667 7,667 * Arbitrage Fund, LLC (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Argent LowLev Convertible 1,640,000 * 54,667 54,667 * Arbitrage Fund Ltd. (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Bear, Stearns & Co. (5) 5,000,000 2.9 166,667 166,667 * ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- BNP Paribas Equity 1,239,000 * 41,300 41,300 * Strategies, SNC (6) (7) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Principal Amount Number of of Notes Number of Shares Shares of Percentage of Beneficially Percentage of of Common Stock Common Stock Common Stock Owned that may be Notes Beneficially that may be Outstanding (%) Name Offered ($) Outstanding (%) Owned Offered (1) (2) (14) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Citadel Credit Trading 1,264,000 * 42,133 42,133 * Ltd. (6) (8) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Citadel Equity Fund Ltd. 14,536,000 8.4 484,533 484,533 1.4 (6) (8) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Class C Trading Company, 130,000 * 4,333 4,333 * Ltd. (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- CooperNeff Convertible 2,818,000 1.6 93,933 93,933 * Strategies (Cayman) Master Fund, LP (7) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Credit Suisse First 5,500,000 3.2 183,333 183,333 * Boston, LLC (5) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Credit Suisse First Boston 30,000 * 1,000 1,000 * Europe Ltd. (6) (9) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- HFR CA Global Select 130,000 * 4,333 4,333 * Master Trust Account (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Lyxor/Convertible 590,000 * 19,667 19,667 * Arbitrage Fund Limited (7) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Lyxor Master Fund Ref: 240,000 * 8,000 8,000 * Argent/LowLev CB c/o Argent (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- MSD TCB, LP (10) 7,000,000 4.1 233,333 233,333 * ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Partners Group Alternative 180,000 * 6,000 6,000 * Strategies PCC LTD (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- RHP Master Fund, Ltd. (11) 2,500,000 1.4 83,333 83,333 * ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Silver Convertible 140,000 * 4,667 4,667 * Arbitrage Fund, LDC (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Silverback Master, Ltd. (12) 16,500,000 9.6 549,999 549,999 1.6 ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Singlehedge US Convertible 658,000 * 21,933 21,933 * Arbitrage Fund (7) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Sturgeon Limited (7) 695,000 * 23,167 23,167 * ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Waterstone Market Neutral 8,522,000 4.9 284,066 284,066 * Masterfund, Ltd. (13) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Xavex-Convertible 70,000 * 2,333 2,333 * Arbitrage 2 Fund (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- ----------------- Xavex-Convertible 230,000 * 7,667 7,667 * Arbitrage 10 Fund c/o Argent (4) ---------------------------- ------------------- ----------------- ------------------ ----------------- -----------------
2 * Less than 1%. (1) Assumes conversion of all of the holder's notes at a conversion rate of 33.3333 shares of common stock per $1,000 principal amount of notes. However, this conversion rate will be subject to adjustment as described under "Description of Notes - Conversion of Notes" in the prospectus. As a result, the number of shares of common stock issuable upon conversion of the notes may increase or decrease in the future. (2) Calculated based on Rule 13d-3(d)(i), using 33,586,430 shares of common stock outstanding as of June 30, 2004. In calculating this amount for each holder, we treated as outstanding the number of shares of common stock issuable upon conversion of all that holder's notes, but we did not assume conversion of any other holder's notes. (3) Mr. Henry J. Cox has sole voting power over these notes and the shares of common stock issuable upon conversion of these notes. (4) Messrs. Nathaniel Brown and Robert Richardson exercise voting power and investment control over these notes and the shares of common stock issuable upon conversion of these notes. (5) The selling securityholder is a registered broker-dealer. (6) The selling securityholder is an affiliate of a registered broker-dealer. (7) Mr. Christian Menestrier has sole voting power over these notes and the shares of common stock issuable upon conversion of these notes. (8) Citadel Limited Partnership ("Citadel") is the trading manager of Citadel Credit Trading Ltd. and Citadel Equity Fund Ltd. and consequently has investment discretion over securities held by Citadel Credit Trading Ltd. and Citadel Equity Fund Ltd. Citadel disclaims beneficial ownership of the shares beneficially owned by Citadel Credit Trading Ltd. and Citadel Equity Fund Ltd. Kenneth C. Griffin indirectly controls Citadel and therefore has ultimate investment discretion over securities held by Citadel Credit Trading Ltd. and Citadel Equity Fund Ltd. Mr. Griffin disclaims beneficial ownership of the shares held by Citadel Credit Trading Ltd. and Citadel Equity Fund Ltd. (9) Mr. Gerry Murtaglo has sole voting power over these notes and the shares of common stock issuable upon conversion of these notes. (10) Messrs. John Phelan and Glenn Fuhrman exercise voting power and investment control over these notes and the shares of common stock issuable upon conversion of these notes. (11) RHP Master Fund, Ltd. is a party to an investment management agreement with Rock Hill Investment Management, L.P., a limited partnership of which the general partner is RHP General Partner, LLC. Pursuant to such agreement, Rock Hill Investment management directs the voting and disposition of shares owned by RHP Master Fund. Messrs. Wayne Bloch and Peter Lockhart own all of the interest in RHP General Partner. The aforementioned entities and individuals disclaim beneficial ownership of the Company's Common Stock owned by the RHP Master Fund. (12) Mr. Elliot Bossen has sole voting power over these notes and the shares of common stock issuable upon conversion of these notes. (13) Mr. Shawn Bergerson has sole voting power and investment control over these notes and the shares of common stock issuable upon conversion of these notes. 3 (14) Assumes that any other holders of notes, or their future transferees, pledgees or donees or their successors, do not beneficially own any common stock other than the common stock issuable upon conversion of the notes at the initial conversion rate. ---------------------- Investing in the notes or our common stock involves a high degree of risk. You should carefully read and consider the "Risk Factors" beginning on page 3 of the prospectus. ---------------------- Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus supplement or the prospectus. Any representation to the contrary is a criminal offense. ---------------------- The date of this prospectus supplement is March 24, 2005 4