S&P provides BB+ to USG notes

S&P said it assigned its BB+ issue-level rating (the same as the corporate credit rating) and 3 recovery rating to USG Corp.'s proposed $500 million senior unsecured notes due 2027.The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default.

USG intends to use all or a portion of the net proceeds from this offering to complete the tender offer of the 7¾% senior notes due 2018 and to pay related costs and expenses. The company also intends to use net proceeds and cash on hand to redeem any of the 2018 notes that remain outstanding after completion of the tender offer.

In addition, the company has increased its asset-based lending facility commitment to $220 million with a maturity of 2022. There will be no outstanding balance at close.

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