Owens Corning's Proposed $400 Million Senior Notes Due 2048 Rated 'BBB'

DALLAS (S&P Global Ratings) Jan. 23, 2018--S&P Global Ratings today assigned its 'BBB' issue-level rating to Owens Corning's proposed $400 million senior notes due 2048. We expect that the company will use the proceeds from these notes, along with the proceeds from the $600 million three-year term loan (unrated) it obtained in October 2017, to fund its acquisition of Paroc Group for an enterprise value of approximately €900 million. Paroc is a leading European producer of mineral wool insulation for building and technical applications. All of our other ratings on Owens Corning remain unchanged. This reflects that, while the transaction may cause the company's adjusted leverage to increase to around 3x at closing, we expect that its metrics will return

...DALLAS (S&P Global Ratings) Jan. 23, 2018--S&P Global Ratings today assigned its '###' issue-level rating to Owens Corning's proposed $400 million senior notes due 2048. We expect that the company will use the proceeds from these notes, along with the proceeds from the $600 million three-year term loan (unrated) it obtained in October 2017, to fund its acquisition of Paroc Group for an enterprise value of approximately 900 million. Paroc is a leading European producer of mineral wool insulation for building and technical applications. All of our other ratings on Owens Corning remain unchanged. This reflects that, while the transaction may cause the company's adjusted leverage to increase to around 3x at closing, we expect that its metrics will return to more appropriate levels for the current rating (including debt-to-EBITDA in the 2x-3x range and a funds from operations-to-debt ratio of over 30%) before the end of 2018. Our ratings on Owens Corning incorporate the company's geographic...

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