Dow to pay off bridge loan with fresh issue of US$2.75 bln in public debt

06-Aug-09

Dow Chemical Co. plans to issue US$2.75 bln in new public debt to pay off a bridge loan used at the time of purchase of Rohm and Haas Co. The US$2.75 bln has been priced in a three-part offering of debt securities, which will be used to repay the bridge loan and refinance other debt. As part of a financing package to buy Rohm & Haas, Dow had secured a US$9.2 bln bridge loan, allowing Dow to increase its share of specialty chemical businesses and position it as an earnings-growth company. Dow had committed to repay the bridge loan by the end of the year, and was was ahead of time in its repayment schedule. This was achieved with the sale of several non-strategic businesses for US$3.3 bln and by issuing debt and common stock. The new debt offering will give Dow flexibility as it continues to sell non-core businesses and free up capital for investments in the company's advanced materials, agricultural sciences and performance portfolios.