USG Corporation Announces Launch of Senior Notes Offering

USG Corporation

today announced that it launched a private offering of $250 million aggregate principal amount of senior notes. The New Notes will be the unsecured obligations of USG. USG's obligations under the New Notes will be guaranteed on a senior unsecured basis by certain of its domestic subsidiaries. USG intends to use all or a portion of the net proceeds from the sale of the New Notes to repurchase its outstanding 9.75% Senior Notes due 2014 that are tendered pursuant to the cash tender offer that USG commenced on March 14, 2012 and to pay all related costs and expenses. As of March 27, 2012, approximately $117.9 million principal amount of the outstanding 2014 Notes had been validly tendered in the tender offer. After repurchasing 2014 Notes pursuant to the tender offer, USG intends to use any remaining net proceeds from the sale of the New Notes for working capital and other general corporate purposes, which may include the repurchase or other acquisition of 2014 Notes or USG's other outstanding indebtedness through open market purchases, privately negotiated transactions, redemptions, other tender offers or otherwise.