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Owens Corning tenders for all 9% notes, up to $140 million 7% notes
By Susanna Moon
Chicago, June 21 – Owens Corning is tendering for its $144,294,000 of 9% senior notes due 2019 and up to $140 million of its $550 million of 7% senior notes due 2036 until midnight ET on July 19.
Pricing will be set at 2 p.m. ET on July 6 using the bid-side yield of a reference security plus a fixed spread for a hypothetical purchase price per $1,000 principal amount as follows:
• For the 9% notes, the 0.875% U.S. Treasury note due June 15, 2019 plus 50 basis points for a total hypothetical purchase price of $1,135.17; and
• For the 7% notes, the 3% U.S. Treasury note due Feb. 15, 2047 plus 150 bps for a total hypothetical purchase price of $1,361.32.
The total purchase price includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on July 5, the early tender date.
The hypothetical pricing was set using the yield of the reference Treasury security as of 2 p.m. ET on June 20 and an expected early settlement date of July 7.
Holders may withdraw their tenders at any time before the early deadline.
The company also will pay accrued interest up to but excluding the settlement date of July 7 for early tenders and July 21 for any remaining tenders.
The offers also contain a financing condition.
Owens plans to redeem any 2019 notes that remain outstanding after the offer, according to a company announcement.
BofA Merrill Lynch (888 292-0072 or 980 387-3907) and Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) are the dealer managers. The tender and information agent is D.F. King & Co., Inc. (877 297-1747 or 212 269-5550)
Owens Corning plans to price senior notes, with $250 million of proceeds earmarked for the tender offer, as reported by Prospect News.
Owens Corning is a Toledo, Ohio-based maker of composite building materials.
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