Published on 8/3/2016 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Owens Corning prices $400 million 3.4% 10-year notes at 190 bps over Treasuries
By Cristal Cody
Eureka Springs, Ark., Aug. 3 – Owens Corning priced $400 million of 3.4% 10-year senior notes with a spread of 190 basis points over Treasuries on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Ba1/BBB/BBB-) priced at 99.587 to yield 3.449%.
BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC and Goldman Sachs & Co. were the bookrunners.
Owens Corning plans to use the proceeds for general corporate purposes, including to exercise a make-whole call to redeem its outstanding 6.5% senior notes due Dec. 1, 2016 and to repay outstanding debt, including but not limited to a portion of borrowings under its securitization facility.
Owens Corning is a Toledo, Ohio-based maker of composite building materials.
| Issuer: | Owens Corning
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Aug. 15, 2026
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Goldman Sachs & Co.
|
| Senior co-managers: | J.P. Morgan Securities LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc.
|
| Co-managers: | BB&T Capital Markets, BNP Paribas Securities Corp., Fifth Third Securities, Inc., Loop Capital Markets LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.4%
|
| Price: | 99.587
|
| Yield: | 3.449%
|
| Spread: | Treasuries plus 190 bps
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 8
|
| Call feature: | Before May 15, 2026 at greater of par and make-whole at Treasuries plus 30 bps; on or after May 15, 2026 at par
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
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