USG extends early tender deadline, scraps consent bid for 9¾% notes

By Susanna Moon

Chicago, March 28 - USG Corp. said holders tendered $117.9 million principal amount of its $300 million of outstanding 9¾% senior notes due 2014 by the original early offer deadline at 5 p.m. ET on March 27.

The company pushed back the early tender deadline to 5 p.m. ET on April 2 and terminated the related consent solicitation, according to a press release.

As previously noted, the total purchase price will be $1,125 for each $1,000 principal amount of notes tendered by the early deadline and includes a $30.00 consent premium. The base payment is $1,095.00 per $1,000 of notes.

The company also will pay accrued interest up to but not including the settlement date in cash.

The tender offer will end at 11:59 p.m. ET on April 11. The offer began on March 14.

The withdrawal deadline passed with the original early tender date.

Holders who tender their notes after the early deadline will not receive the consent premium.

USG originally solicited consent to amend the notes to eliminate substantially all of the restrictive covenants and events of default. The company needed to receive consents from holders of at least a majority of the notes to amend the notes.

The offer is conditioned on the company securing financing with enough proceeds to fund the offer but it is not conditioned on any minimum amount of notes being tendered.

Citigroup Global Markets, Inc. (800 558-3745 or collect 212 723-6106) and J.P. Morgan Securities LLC (800 245-8125 or collect 212 270-0761) are the dealer managers. Global Bondholder Services Corp. (866 795-2200 or banks and brokers 212 430-3774) is the depositary and information agent.

USG is a Chicago-based manufacturer of construction materials.

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