Warren Buffett's Berkshire Hathaway has agreed to make a new $300 million investment in USG Corporation, sending shares soaring for the big Chicago-based building materials maker. They've been hit very hard by the housing market's severe downturn.
Around lunchtime on Wall Street, USG is up almost 22 percent to $6.89 a share. Current price:
Berkshire will get "contingent convertible senior notes" with an initial interest rate of 10 percent a year.
If USG shareholders approve, the notes will be convertible into USG common stock at the price of $11.40 a share. While that's double yesterday's closing price, USG shares were trading between $30 and $40 earlier this year.