Owens Corning tenders for up to $450 million of 4.2%, 7% notes

By Sarah Lizee

Olympia, Wash., July 29 – Owens Corning announced the launch of a cash tender to purchase up to $450 million combined amount of its $600 million 4.2% senior notes due 2022 and $410 million 7% senior notes due 2036.

The offer will expire at midnight ET on Aug. 24.

Notes accepted for purchase will be accepted in line with their acceptance priority levels, with the 4.2% notes given priority level one and the 7% notes given priority level two.

Holders who tender their notes at or prior to 5 p.m. ET on Aug. 9, the early deadline, will be eligible to receive the applicable total tender offer consideration, which includes the applicable early tender premium of $30 per $1,000 of notes.

Pricing will be set at 10 a.m. ET on Aug. 12 using the bid-side yield of a reference security plus a fixed spread as follows:

• For the 4.2% notes, the 1.75% U.S. Treasury note due July 15, 2022 plus 70 basis points; and

• For the 7% notes, the 3% U.S. Treasury note due Feb. 15, 2049 plus 255 bps.

Holders will also receive accrued interest.

Holders may withdraw their tenders at any time at or prior to the early deadline.

Early settlement is scheduled for Aug. 13.

Settlement for notes tendered after the early deadline is scheduled for Aug. 27.

The tender offer is conditioned on the company completing a new offering of senior debt securities before the tender expiration time.

BofA Securities, Inc. (888 292-0070 or 980 387‑3907), Citigroup Global Markets Inc. (800 558-3745 or 212 723‑6106) and Wells Fargo Securities, LLC (866 309-6316 or 704 410‑4759) are acting as dealer managers. The tender and information agent is D.F. King & Co., Inc. (800 761‑6521 in the United States, 212 269-5550 banks and brokers or oc@dfking.com).

Owens Corning is a Toledo, Ohio-based maker of composite building materials.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.