Company: OC
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-022858
Chunk: 23

Company: Owens Corning
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 transferred was determined as follows:(In millions)Fair Value of Purchase Consideration                Closing cash consideration$2,935 Pre-combination vesting portion of fair value of Masonite outstanding equity awards converted to Owens Corning time vesting RSUs35Repayment of Masonite term loan facility216Total transaction consideration$3,186 The closing cash as part of preliminary estimated consideration was calculated at the price of $133.00 per outstanding Masonite common share. At the close of the acquisition of Masonite, there were 22.07 million Masonite common shares outstanding.The preliminary estimated fair value of Owens Corning common stock underlying Masonite outstanding equity awards that have been converted into awards with respect to Owens Corning common stock is calculated as follows:(In millions, except share and per share amounts)AmountNumber of Masonite stock awards outstanding (a)639,608 Exchange ratio (b)0.7642Owens Corning equity awards issued for Masonite outstanding equity awards488,778 10-day weighted average closing share price of Owens Corning common stock (c)$174.03 Fair value of Owens Corning time vesting RSUs issued for Masonite outstanding equity awards$85 Less: Estimated fair value allocated to post-transaction compensation expense(50)Fair value of awards included in transaction consideration$35 (a)    Represents the Masonite stock awards that have been converted into Owens Corning equity awards upon completion of the acquisition of Masonite, based on awards outstanding at May 15, 2024. Masonite equity awards include awards issued under various stock incentive plans of Masonite.(b)    The exchange rate was determined by the consideration amount divided by the volume weighted average closing sale price of one share of Owens Corning common stock for the ten consecutive trading days ended May 15, 2024, in accordance with the terms of the Arrangement Agreement.(c)    The ten-day weighted average closing share price was calculated for the ten consecutive trading days ended May 15, 2024, in accordance with the terms of the Arrangement Agreement.On May 15, 2024, the effective date of the Arrangement, the Company transferred consideration to Masonite to repay the Masonite 2027 term loan facility (the "Masonite term loan facility"). This repayment was required by the change in control provision within the terms of the Masonite term loan facility.The Company has applied the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic