Owens Corning gets $900 million of term loans to acquire Paroc

By Marisa Wong

Morgantown, W.Va., Oct. 30 – Owens Corning entered into two loan agreements on Oct. 27 in connection with its proposed acquisition of Parry I Holding AB, the owner of Paroc Group Oy, according to an 8-K filed Monday with the Securities and Exchange Commission.

The agreements include a $600 million term loan agreement with JPMorgan Chase Bank, NA as administrative agent and a $300 million 364-day term loan agreement also with JPMorgan Chase Bank as administrative agent.

The first facility matures on the earlier of three years after funding or the date of acceleration. The 364-day facility matures on the earlier of Oct. 26, 2018 or the date of acceleration.

Interest under both facilities accrues at Libor plus an applicable margin based on the company’s corporate credit ratings.

Obligations under the loan agreements are guaranteed by some of Owen Corning’s wholly owned domestic subsidiaries.

Borrowings may be used to finance the Paroc acquisition as well as other general corporate purposes and working capital.

Owens Corning announced on Sunday that it signed an agreement with CVC Capital Partners to acquire Paroc, a leading producer of mineral wool for building and technical insulation products and solutions in Europe, for about €900 million. The transaction, subject to regulatory approvals and other conditions, is expected to close in early 2018.

The company said in a press release that it plans to finance the acquisition using a combination of long-term debt and pre-payable bank loans.

Owens Corning is a Toledo, Ohio-based maker of composite building materials.

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