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S&P assigns BB to USG notes
Standard & Poor's said it assigned its BB issue-level rating and 1 recovery rating to USG Corp.'s proposed $350 million senior notes due 2025.
The notes will be the unsecured obligations of USG. Certain of its domestic subsidiaries will guarantee its obligations under the new notes on a senior unsecured basis.
USG intends to use the net proceeds to repurchase its outstanding 8 3/8% senior notes due 2018 that are tendered pursuant to the cash tender offer that began on Feb. 17 and to pay related costs and expenses.
The company also intends to use any remaining net proceeds and cash on hand to redeem any 2018 notes that remain outstanding after completion of the tender offer.
Although it would expect reduced interest costs, S&P said it does not expect any impact to the B+ corporate credit rating or any material impact to the company's credit measures, "aggressive" financial risk profile or "strong" liquidity.
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