USG sees early tenders of $192.55 million 7¾% senior notes due 2018

By Wendy Van Sickle

Columbus, Ohio, May 12 – USG Corp. said $192,554,000 of its $500 million of 7¾% senior notes due 2018 were tendered by the early deadline of its offer to buy the notes.

The early deadline was 5 p.m. ET on May 12.

The company will pay $1,044.30 per $1,000 principal amount for the early-tendered notes. The amount includes an early tender premium of $30 per $1,000 principal amount.

USG will also pay accrued interest up to but excluding the settlement date. Early settlement is expected to occur on May 15, according to a news release.

Holders who tender after the early deadline will receive $1,014.30 per $1,000 principal amount.

The tender ends at 11:59 p.m. ET on May 26.

Final settlement will be on May 30.

USG plans to redeem any notes not tendered under the offer at the make-whole premium plus accrued interest.

Because the notes have a feature allowing the coupon to be adjusted by up to 2% on changes in the company’s debt rating, the notes are currently paying an interest rate of 8¼%.

Completion of the tender is subject to conditions including the receipt of sufficient proceeds from a planned debt financing. USG priced an offering of $500 million senior notes on May 1.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is dealer manager. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is depositary and information agent.

USG is a Chicago-based manufacturer of building materials.

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