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 BNP Paribas 15,084 31 17.18
2 Bank of America Merrill Lynch (BAML) 9,637 29 10.97
3 Citi 8,093 21 9.22
4 Lloyds Bank 7,329 24 8.35
5 JP Morgan 6,580 10 7.49

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 129,591.43 378 11.20%
2 Bank of America Merrill Lynch 103,557.15 301 8.95%
3 JPMorgan 101,741.96 296 8.79%
4 Wells Fargo Securities 91,373.90 263 7.90%
5 Credit Suisse 76,186.18 204 6.58%