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 12,508 23 18.18
2 Bank of America Merrill Lynch (BAML) 8,059 25 11.72
3 Lloyds Bank 5,761 18 8.38
4 Citi 5,606 15 8.15
5 JP Morgan 5,007 7 7.28

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 94,444.52 266 11.16%
2 Bank of America Merrill Lynch 79,057.17 220 9.35%
3 Wells Fargo Securities 69,655.75 196 8.23%
4 JPMorgan 69,110.65 196 8.17%
5 Credit Suisse 56,930.26 144 6.73%