Owens Corning requests court approval of $2.4 billion exit financing commitment

By Caroline Salls

Pittsburgh, June 30 - Owens Corning requested court approval of a $2.4 billion exit financing commitment from Citigroup Global Markets, Inc. and Bank of America, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The five-year facility includes a $1.4 billion term loan and a $1 billion revolving credit facility.

If the company is able to raise more than $400 million through a securities offering under its plan of reorganization, the term loan will be reduced by that amount.

The exit commitment will terminate on July 31.

Owens Corning will pay a $50,000 annual administrative fee.

The full terms of the commitment letter were filed under seal.

A hearing is scheduled for July 24.

Owens Corning, a Toledo, Ohio, building materials company, filed for bankruptcy on Oct. 5, 2000. Its Chapter 11 case number is 00-3837.

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