USG holders convert $75 million 10% convertibles ahead of redemption

By Jennifer Chiou

New York, April 17 - USG Corp. announced that holders of all $75 million principal amount of its outstanding 10% contingent convertible senior notes due 2018 elected to convert their holdings into common shares.

As a result, the company issued an additional 6,578,946 shares of its common stock.

USG gave notice of the redemption of the securities on March 18.

At that time, the company said it would redeem the convertible notes on April 17 at 105 plus accrued interest to the redemption date, for a total payment of $1,087.77 per $1,000 principal amount.

In lieu of redemption, holders elected to convert their notes into shares of USG common stock before April 17. The notes were convertible into 87.7193 shares per $1,000 principal amount, which was equivalent to a conversion price of $11.40 per share.

USG stock closed at $34.29 (NYSE: USG) on March 18 and at $31.60 on April 17.

The issuer is a Chicago-based manufacturer and distributor of building systems.

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