Owens Corning gives pricing on cash tender offer for 4.2%, 7% notes

Chicago, Aug. 12 – Owens Corning announced pricing on its tender offer for up to $450 million combined amount of its $600 million 4.2% senior notes due 2022 and $410 million 7% senior notes due 2036, according to a notice.

As previously reported, pricing was 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.

The total tender offer consideration, therefore, for the 2022 notes was calculated to be $1,058 per $1,000 principal amount of notes.

For the 2036 notes, the total tender offer consideration came to $1,266.47 per $1,000 principal amount of notes.

Both figures are inclusive of the $30 early tender premium.

Holders will also receive accrued interest.

Early settlement is scheduled for Aug. 13.

As reported earlier, of the $600 million 4.2% senior notes, $415,944,000 of the notes were tendered as of the early deadline, 5 p.m. ET on Aug. 9, and all of those notes were accepted.

Of the $410 million 7% senior notes, $68,130,000 of the notes were tendered by the early deadline and $34,056,000 were accepted, half of the notes tendered.

The offer will expire at midnight ET on Aug. 23; however the amount of notes tendered has already exceeded the maximum tender amount and no more notes will be accepted for purchase. The 2036 notes not accepted for purchase will be promptly returned or credited to the holder’s account.

The offer was announced on July 29.

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.

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