USG holders convert all 10% convertible notes ahead of redemption

By Susanna Moon

Chicago, Dec. 13 - USG Corp. holders elected to convert all $325 million of outstanding 10% contingent convertible senior notes due 2018 ahead of redemption, according to an 8-K filing with the Securities and Exchange Commission.

As of Dec. 12, the company has issued an additional 28,508,768 shares of its common stock in connection with the conversion of the notes.

The notes were convertible into 87.7193 USG shares per $1,000 principal amount of notes, which is a conversion price of $11.40 per share, as previously announced.

Based on trading prices of its stock, USG said it believed holders were likely to elect to convert their notes.

The company's stock (NYSE: USG) closed at $27.42 on Nov. 14.

USG issued a call on Nov. 15 for the convertibles with plans to redeem the notes on Dec. 16 at 105 plus accrued interest to but excluding the redemption date.

Funding for any redemption of the notes would have come from a combination of cash, cash equivalents and borrowings under its credit facilities to fund the redemption price.

USG is a Chicago-based manufacturer and distributor of high-performance building systems.

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