Owens Corning announces increases in the prices offered in its previously announced cash tender offers for up to 350 million USD aggregate principal amount of certain outstanding notes
Owens Corning (NYSE: OC) announced that it is amending the terms of its offers to purchase for cash up to 250 million USD aggregate principal amount of its 6.500% Senior Notes due 2016 (the “2016 Notes”) and up to 100 million USD aggregate principal amount of its 9.000% Senior Notes due 2019 (the “2019 Notes” and together with the 2016 Notes, the “Outstanding Notes”).
Owens Corning is increasing the price that it is offering for the Outstanding Notes by changing the Fixed Spread used to calculate the applicable consideration from, in the case of the 2016 Notes, 190 bps to 120 bps and, in the case of the 2019 Notes, 245 bps to 180 bps. Except for the amendment described above, the Tender Offers are described in the Offers to Purchase For Cash, dated October 17, 2012 (the “Offer to Purchase”), which sets forth a complete description of the terms and conditions of the Tender Offers, and the related Letter of Transmittal (the “Letter of Transmittal”). Holders of Outstanding Notes are urged to read this release, the Offer to Purchase and Letter of Transmittal carefully before making any decision with respect to the Tender Offers. Except as described in this release, all other terms and conditions of the Tender Offers will remain as described in the Offer to Purchase and the Letter of Transmittal.
If Owens Corning purchases the entire 350 million USD aggregate principal amount of the Outstanding Notes in the Tender Offers, it anticipates that it will incur a “loss from debt extinguishment” resulting in a charge of approximately 75 million USD in the fourth quarter of 2012.