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USG receives early tenders for $118.2 million of 9¾% notes due 2014
New York, April 2 - USG Corp. said it received tenders for $118,196,000 of its $300 million of outstanding 9¾% senior notes due 2014 by the extended early offer deadline of 5 p.m. ET on April 2.
That was up from $117.9 million at the original early offer deadline of 5 p.m. ET on March 27.
At its previous announcement on March 28, the company pushed back the early tender deadline to 5 p.m. ET on April 2 and terminated the related consent solicitation, according to a press release.
As previously reported, the total purchase price will be $1,125 for each $1,000 principal amount of notes tendered by the early deadline, a figure that includes a $30 consent premium. The base payment is $1,095 per $1,000 of notes.
Holders who tender their notes after the early deadline will not receive the consent premium.
The company also will pay accrued interest up to but not including the settlement date in cash.
The tender offer will end at 11:59 p.m. ET on April 11. The offer began on March 14.
The withdrawal deadline passed with the original early tender date.
USG originally solicited consent to amend the notes to eliminate substantially all of the restrictive covenants and events of default. The company needed to receive consents from holders of at least a majority of the notes to amend the notes.
The offer is conditioned on the company securing financing with enough proceeds to fund the offer but it is not conditioned on any minimum amount of notes being tendered. USG said Monday that it expects to meet the financing condition on April 12 when its recent offering of $250 million of new notes closes.
Citigroup Global Markets, Inc. (800 558-3745 or collect 212 723-6106) and J.P. Morgan Securities LLC (800 245-8125 or collect 212 270-0761) are the dealer managers. Global Bondholder Services Corp. (866 795-2200 or banks and brokers 212 430-3774) is the depositary and information agent.
USG is a Chicago-based manufacturer of construction materials.
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