By Andrea Heisinger
New York, June 3 - Owens Corning priced an upsized $350 million of 9% 10-year split-rated notes (Ba1/BBB-) Wednesday to yield 9.25%, an informed source said.
The deal was priced off the high-grade syndicate desk and talked at 9.375%, the source said. "Ultimately it priced at 9 and a quarter," he said. "It did well."
The notes priced at 98.386 with a spread of Treasuries plus 570.1 basis points. The notes feature a make-whole call of Treasuries plus 50 bps.
There is a change-of-control put of 101%.
Bookrunners were Citigroup Global Markets Inc., Banc of America Securities LLC, Wachovia Capital Markets LLC and J.P. Morgan Securities Inc.
Proceeds will be used to repay amounts under a $1 billion multi-currency unsecured senior revolving credit facility maturing Oct. 31, 2011.
The composite and building materials company is based in Toledo, Ohio.
| Issuer: | Owens Corning
|
| Issue: | Senior notes
|
| Amount: | $350 million, increased from $250 million
|
| Maturity: | June 15, 2019
|
| Bookrunners: | Citigroup Global Markets Inc., Banc of America Securities LLC, Wachovia Capital Markets LLC, J.P. Morgan Securities Inc.
|
| Coupon: | 9%
|
| Price: | 98.386
|
| Yield: | 9.25%
|
| Spread: | Treasuries plus 570.1 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 3
|
| Settlement date: | June 8
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Price talk: | 9.375%
|
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