New Issue: USG prices $250 million 7 7/8% eight-year notes at 99.279 to yield 8%

By Paul A. Harris

Portland, Ore., March 29 - USG Corp. priced a $250 million issue of 7 7/8% eight-year senior notes (B2/BB-/) at 99.279 to yield 8% on Thursday, according to a syndicate source.

The yield printed on top of price talk.

Citigroup Global Markets Inc. was the left bookrunner for the quick-to-market deal. J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the joint bookrunners.

The Chicago-based construction materials manufacturer plans to use the proceeds to fund the tender offer for its 2014 notes and for working capital and general corporate purposes.

Issuer:	USG Corp.
Amount:	$250 million
Maturity:	March 30, 2020
Securities:	Senior notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	J.P. Morgan Securities LLC, Bank of America Merrill Lynch
Co-managers:	Goldman Sachs & Co., RBC Capital Markets
Coupon:	7 7/8%
Price:	99.279
Yield:	8%
Spread:	584 bps
Call features:	Make-whole call at Treasuries plus 50 bps until March 30, 2016, then callable at 103.938, 101.969, par on and after March 30, 2018
Trade date:	March 29
Settlement date:	April 12
Ratings:	Moody's: B2
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	8% area
Marketing:	Quick to market

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