By Paul A. Harris
St. Louis, July 30 - USG Corp. priced an upsized $300 million issue of 9¾% five-year senior bullet notes (B1/BB) at 98.086 to yield 10¼% on Thursday, according to an informed source.
The yield was printed at the tight end of the 10¼% to 10½% yield talk, while the issue price came rich to the contemplated discount range of 2 to 4 points. The offering was upsized from $250 million.
JP Morgan and Bank of America Merrill Lynch were joint bookrunners for the deal.
Proceeds will be used for general corporate purposes.
The notes are guaranteed on a senior unsecured basis by certain of the Chicago-based building materials company's domestic subsidiaries.
Issuer: USG Corp.
| Face amount: | $300 million (increased from $250 million)
|
| Proceeds: | $294.258 million
|
| Maturity: | Aug. 1, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Bank of America Merrill Lynch
|
| Co-managers: | Citigroup, Goldman Sachs & Co., RBS Securities Inc.
|
| Coupon: | 9¾%
|
| Price: | 98.086
|
| Yield: | 10¼%
|
| Spread: | 752 bps
|
| Call protection: | Non-callable, with make-whole provision at Treasuries plus 50 bps
|
| Trade date: | July 30
|
| Settlement date: | Aug. 4
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A for life/Regulation S
|
| Price talk: | 10¼% to 10½% with 2 to 4 points of OID
|
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