Owens Corning Recieves Exit Financing Commitments

Owens Corning has tapped Citigroup and Banc of America Securities for a $2.4 billion exit financing.

  • 14 Jul 2006
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Owens Corning has tapped Citigroup and Banc of America Securities for a $2.4 billion exit financing. The deal consists of a $1 billion revolver and a $1.4 billion delayed-draw term loan, both maturing in 2011, according to a banker. Pricing could not be determined. Standard & Poor's rated the facility BBB-.

Owens Corning's bonds have fallen because of continued concerns of a slowdown in the housing sector and because the notes will be converted into equity when the company emerges from bankruptcy later this year (CIN, 6/23).

The company entered voluntary bankruptcy protection in October 2000 to resolve asbestos claims and mounting asbestos-litigation costs. The facility, along with a $2.2 billion rights offering and $1.5 billion of cash on hand, will be used to pay pre-bankruptcy liabilities and fund contributions to the company's asbestos personal injury trust. A spokesman for Owens Corning would not comment on the facility.

Owens Corning's $250 million revolver is trading between 157 5/8 ­ 159 5/8. Its 7 1/2% '18 bonds are at 79 3/4 from 82 1/4 July 10, according to Markit.

  • 14 Jul 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

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1 Citi 82,367.33 238 12.89%
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4 JPMorgan 45,920.23 145 7.19%
5 Credit Suisse 37,235.50 114 5.83%