USG Corporation Announces Notice of Partial Redemption of Convertible Senior Notes

  USG Corporation Announces Notice of Partial Redemption of Convertible Senior

Business Wire

CHICAGO -- November 15, 2013

USG Corporation (NYSE: USG), a leading building products company, today
announced that it has issued a notice of redemption to redeem on December 16,
2013 $325 million in aggregate principal amount of USG’s outstanding $400
million in aggregate principal amount of 10% contingent convertible senior
notes due 2018.

The notice of redemption provides that the convertible senior notes called for
redemption would be redeemed at a stated redemption price equal to 105% of the
aggregate principal amount of such notes, plus accrued and unpaid interest to
(but not including) the redemption date.

In lieu of redemption, holders may elect prior to the redemption date to
convert their convertible senior notes into shares of USG common stock. The
convertible senior notes are convertible into 87.7193 shares of USG common
stock per $1,000 principal amount of notes, which is equivalent to a
conversion price of $11.40 per share. Based on recent trading prices of USG
common stock, USG believes that the holders of the convertible senior notes
currently would elect to convert their notes called for redemption rather than
receive the redemption price.

To the extent holders of the convertible senior notes do not elect to convert
their notes called for redemption prior to the redemption date, USG expects to
use a combination of cash, cash equivalents and borrowings under its credit
facilities to fund the redemption price.

As previously disclosed, USG’s net operating loss carryforwards would be
subject to limitations under the Internal Revenue Code in the event the
ownership of certain USG stockholders increases by more than 50% over a
three-year period. As a result, USG elected to issue a notice of redemption
for less than all of the convertible senior notes outstanding at this time. In
addition, USG’s Board of Directors took action to ensure that the issuances of
all shares of USG common stock to initial purchasers of the convertible senior
notes pursuant to a conversion of their convertible senior notes are exempt
transactions under USG’s rights plan.

About USG

USG Corporation is a manufacturer and distributor of innovative,
high-performance building systems through its United States Gypsum Company,
USG Interiors, LLC, L&W Supply Corporation and other subsidiaries.
Headquartered in Chicago, USG Worldwide operations serve the commercial,
residential, and repair and remodel construction markets, enabling our
customers to build the outstanding spaces where people live, work and play.
USG wall, ceiling, exterior sheathing, flooring underlayment and roofing
systems provide leading-edge building solutions, while L&W Supply branch
locations efficiently stock and deliver building materials throughout the
United States. USG and its subsidiaries are proud sponsors of the U.S. Olympic
and Paralympic teams and the Canadian Olympic team. For additional
information, visit

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 related to management’s
expectations about future conditions. Actual business, market or other
conditions may differ materially from management’s expectations and,
accordingly, may affect USG’s sales and profitability or other results and
liquidity. Actual results may differ materially due to various other factors,
including: economic conditions, such as the levels of new home and other
construction activity, employment levels, the availability of mortgage,
construction and other financing, mortgage and other interest rates, housing
affordability and supply, the levels of foreclosures and home resales,
currency exchange rates and consumer confidence; capital markets conditions
and the availability of borrowings under our credit agreement or other
financings; our substantial indebtedness and our ability to incur substantial
additional indebtedness; competitive conditions, such as price, service and
product competition; shortages in raw materials; changes in raw material and
energy costs; volatility in the assumptions used to determine the funded
status of our pension plans; the loss of one or more major customers and our
customers’ ability to meet their financial obligations to us; capacity
utilization rates for us and the industry; our ability to expand into new
geographic markets and the stability of such markets; our ability to
successfully enter into and operate the joint venture with Boral Limited,
including risks that our joint venture partner, Boral Limited, may not fulfill
its obligations as an investor or may take actions that are inconsistent with
our objectives; our ability to protect our intellectual property and other
proprietary rights; changes in laws or regulations, including environmental
and safety regulations; the satisfactory performance of certain business
functions by third party service providers; our ability to achieve anticipated
savings from cost reduction programs; the outcome in contested litigation
matters; the effects of acts of terrorism or war upon domestic and
international economies and financial markets; and acts of God. USG assumes no
obligation to update any forward-looking information contained in this press
release. Additional information concerning these and other factors may be
found in USG’s filings with the Securities and Exchange Commission, including
the “Risk Factors” in USG’s most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q.


USG Corporation
Robert Williams, (312) 436-4356
Matthew Ackley, (312) 436-6263
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