By Andrea Heisinger and Paul A. Harris
New York, Oct. 17 - Owens Corning priced $600 million of 4.2% 10-year senior notes (Ba1/BBB-/BBB-) on Wednesday to yield 240 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
A trader said that the notes were initially talked in the 300 bps area and later in the 250 bps area, and added that the sale was a total blowout. The deal size was increased slightly from $500 million.
Pricing was at 99.91 to yield 4.21%.
The notes will have a make-whole call at Treasuries plus 35 bps until Sept. 15, 2022 and a par call after that date. There is a change-of-control put on the notes at 101%.
Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to purchase outstanding debt tendered for in an offer on Oct. 17, to repay outstanding borrowings under an $800 million revolving credit facility and for general corporate purposes.
Owens Corning was last in the bond market with a $350 million offering of 9% 10-year notes priced on June 3, 2009 to yield 9.25%.
The glass fiber technology and maker of composite and building materials is based in Toledo, Ohio.
| Issuer: | Owens Corning
|
| Issue: | Senior notes
|
| Amount: | $600 million, upsized from $500 million
|
| Maturity: | Dec. 15, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 4.2%
|
| Price: | 99.91
|
| Yield: | 4.21%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until Sept. 15, 2022, par call after
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 17
|
| Settlement date: | Oct. 22
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 300 bps area (initial), 250 bps area (revised)
|
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