USG is a building products manufacturer and the largest producer of gypsum wallboard in the United States. Prior to filing for Chapter 11 to address its asbestos liabilities, USG was named in more than 250,000 asbestos-related personal injury cases.

Chilmark was retained as the company’s financial advisor, and we helped craft a reorganization strategy that allowed the company to emerge from bankruptcy using section 524(g) of the bankruptcy code. Financing for the settlement with asbestos claimants was achieved through a $1.5 billion, non-coercive rights offering. We initiated and negotiated a backstop for that offering with Berkshire Hathaway, then the company’s largest shareholder.

Following its successful emergence from bankruptcy, we continued to assist the company as it confronted softness in the residential construction end market. We advised management and the Board of Directors on several additional financing transactions including:

• Issuance of $500 million of unsecured debentures
• Renegotiation of covenants in its unsecured credit facility
• Issuance of $400 million of convertible debentures to Berkshire Hathaway and Fairfax Financial
• Refinancing its unsecured credit facility with a $550 million asset-based loan secured by receivables and inventory

« Previous Next »