Owens Corning tenders for up to $350 million of 6½% notes, 9% notes

By Susanna Moon

Chicago, Oct. 17 - Owens Corning said it began tenders offers for up to $250 million principal amount of its $650 million 6½% senior notes due 2016 and up to $100 million principal amount of its $350 million 9% senior notes due 2019.

Pricing for each $1,000 principal amount will be set using the bid-side yield of a reference Treasury note as of 2 p.m. ET on Oct. 30 plus a fixed spread as follows:

• For the 6½% notes, the 0.625% Treasury notes due Sept. 30, 2017 plus 190 basis points, with a hypothetical total purchase price of $1,150.47; and

• For the 9% notes, the 1.625% Treasury notes due Aug. 15, 2022 plus 245 bps, for a hypothetical total purchase price of $1,276.90.

The total purchase price will include a $30.00 premium for each $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 30, the consent date.

Holders will also receive accrued interest to the settlement date, which will be Oct. 31 for notes tendered by the early deadline and the day after the offer expires for the remaining tenders.

The tender offers will end at midnight ET on Nov. 14. Tendered notes may be withdrawn by the early deadline.

Those who tender after the early deadline will not receive the consent premium.

Completion of the tender offers is conditioned on completion of the company's senior notes offering. Proceeds from the notes sale also will be used to pay down revolver debt and for general corporate purposes.

Bank of America Merrill Lynch (888 292-0070 or collect 646 855-3401) and Wells Fargo Securities, LLC (866 309-6316 or collect 704 715-8341) are the dealer managers for the tender offers. D.F. King & Co., Inc. (800 290-6426 or banks and brokers 212 269-5550) is the tender and information agent.

Owens Corning is a Toledo, Ohio, building materials company.

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