Owens Corning looking to extend DIP facility, bring in new lenders

New York, Sept. 16 - Owens Corning is looking to amend its debtor-in-possession financing facility to extend the maturity and add additional lenders, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The proposed changes would push back the maturity to Nov. 15, 2006 from the current Nov. 15, 2004.

The syndicate would also be modified as part of the amended. Merrill Lynch Capital and Deutsche Bank Securities, Inc. will be named co-documentation agents, Citigroup Global Markets, Inc. and Bank of America, NA will be joint arrangers and Citigroup Global Markets will be syndication agent. Commitments under the revolver would be split so that Bank of America would each put up $75 million, or 30%, and Deutsche Bank Trust Co. Americas and Merrill Lynch $50 million each or 20%. Currently Bank of America is lender and agent on the facility and provides the full $250 million commitment.

Among other changes included in the amendment, the interest rate would be reduced for some average daily exposure thresholds.

Owens Corning will pay a fee of $375,000 for the amendment.

The Toledo, Ohio-based building materials company is asking the bankruptcy court to authorize the amendment. A hearing is set for Oct. 25.

Owens Corning filed for bankruptcy on Oct. 5, 2000. Its Chapter 11 case number is 00-03837.

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