EFTA01378316

INTERNAL USE ONLY DO NOT DISTRIBUTE IN PART OR IN WHOLE Corporate Credit > U.S. Investment Grade Owens Corning Trade Idea: 0 Buy: OC 4.2% of December 2024 (IG Building Materials), notes offer attractive valuations vs. other BBB industrials Investment Rationale: OC is expected to benefit from growth in U.S. residential new construction, improved pricing and operating leverage, as a result we expect the trajectory of spreads to be tighter and outperform Cap Goods sector OC's diverse product mix provides significant leverage to starts as well as improving profitability due to raw material deflation in the roofing business 2015 Guidance - Insulation is still expected to "benefit from growth in U.S. residential new construction, improved pricing and operating leverage". In Composites, 0C raised its EBIT improvement by $15 million to a $60 million improvement (inclusive of $25 million negative impact from FX). In Roofing, OC continues to expect full year U.S. shingle market demand to be "in-line with last year". Recommendation(s): Updated: Oct 2, 2015 Trade Ratings Issue Spread Cash View Horizon Ticker CPN Maturity CCY Size Yield Price ISIN S&P Moody s Entry Target Loss Outperform 3/1/16 OC 42`n 12/01/2024 BBB Bat USD 400 4 27 240 200 275 98.5 U569074 2AE13 Deutsche Asset & Werith Management 17 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0075485 SDNY_GM_00221669 EFTA01378316