Key Developments: USG Corp (USG)
27.80USD
24 May 2013
$-0.53 (-1.87%)
$28.33
$27.89
$27.99
$27.07
1,886,599
2,096,475
$30.97
$13.12
Latest Key Developments (Source: Significant Developments)
USG Corporation Announces Strategic Partnership With Zawawi Group
USG Corporation announced that it has entered into a strategic partnership with the Zawawi Group of Oman to meet the growing demand for its building products in the Middle East and India. The investment by USG opens up new opportunities for the company in the rapidly growing Indian wallboard market, and will provide commercial construction projects in the region better access to USG’s industry leading wallboard products. USG expects the investment of approximately $60 million to be incurred over two years, with the majority in 2012. USG’s partnership with the Zawawi Group will be multifaceted. The first phase will be establishment of a mining joint venture through which USG will acquire 55% of Zawawi Gypsum, which holds the mining rights to a gypsum quarry in Salalah, Oman. The joint venture will develop infrastructure and operate the quarry. The second phase of the partnership will be a 50/50 manufacturing joint venture with Zawawi Minerals to build and operate a new low cost wallboard plant in the Salalah Free Zone, Oman. The Free Zone in Oman is an enterprise zone that has been operational for three years and has attracted in excess of $4 billion in investments from international companies. The plant site is in close proximity to the gypsum quarry and port facilities, facilitating efficient access into markets in India and the Middle East. The target for commencement of wallboard production operations is the fourth quarter of 2013. Full Article
USG Corporation Announces Pricing of Offering of 7.875% Senior Notes Due 2020
USG Corporation announced the pricing of a private offering of $250 million aggregate principal amount of its 7.875% senior notes due 2020 (the New 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. The New Notes will be sold to investors at a price of 99.279% of the principal amount of the New Notes, plus accrued interest from April 12, 2012, if any. The offering of the New Notes is expected to close on or about April 12, 2012. 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 (the 2014 Notes) that are tendered pursuant to the cash tender offer that USG commenced on March 14, 2012 and to pay all related costs and expenses. The consummation of the offering of the New Notes will satisfy the financing condition for the tender offer, which the Company expects to complete in connection with the closing of the offering of the New Notes. 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. Full Article
USG Corporation Elects Matthew F. Hilzinger Executive Vice President And Chief Financial Officer
USG Corporation announced the election of Matthew F. Hilzinger to the position of executive vice president and Chief Financial Officer(CFO), effective May 1, 2012. He succeeds Richard H. Fleming, who will remain with USG as Executive Vice President until his expected retirement later this year. Full Article
USG Corporation Chairman William C. Foote To Retire; Board Elects James S. Metcalf Chairman
USG Corporation announced that its longtime Chairman, William C. Foote, will retire from the Company and its Board of Directors effective December 1, 2011. The Company's Board of Directors elected James S. Metcalf, the Company`s President and Chief Executive Officer, to the additional post of Chairman of the Board effective upon Mr. Foote`s retirement. These changes complete an executive succession plan overseen by Mr. Foote and the Company's Board of Directors over the past few years. Full Article
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