Dow Chemical Announces Early Results of Debt Tender Offer
MIDLAND, Mich. – The Dow Chemical Company (TDCC), a subsidiary of Dow Inc. (NYSE: DOW), recently announced the preliminary results of its tender offer (the “Tender Offer”) to purchase certain debt securities and securities of Rohm and Haas Company (Rohm and Haas) and Union Carbide Corporation (UCC), both of which are TDCC’s wholly owned subsidiaries. The securities listed below were tendered in the Tender Offer:
| Subsidiary | Series and CUSIP Number | Amount Outstanding | Total Tendered |
|---|---|---|---|
| TDCC | 6.125% Notes due 2027 (CUSIP No. 114162AB8) | $1,500,000,000 | $1,800,000,000 |
| Rohm and Haas | 5.625% Notes due 2026 (CUSIP No. 114148AB4) | $500,000,000 | $550,000,000 |
| UCC | 6.375% Notes due 2031 (CUSIP No. 114171AB2) | $2,000,000,000 | $2,200,000,000 |
Impact on Individual Investors:
For individual investors holding the tendered securities, the following steps will occur:
- Dow will accept for purchase all of the tendered securities, subject to the conditions and limitations described in the Tender Offer.
- Dow will promptly pay cash for the tendered securities, including accrued and unpaid interest up to, but not including, the payment date.
- Dow will also pay any applicable taxes withheld in accordance with applicable law.
Impact on the Global Economy:
The implications of Dow’s tender offer extend beyond its subsidiaries and investors:
- Interest Rates: The successful tender offer for Dow’s debt securities and those of its subsidiaries might indicate confidence in the company’s financial health and potentially lead to lower interest rates for Dow in the future.
- Market Stability: The successful completion of the tender offer could contribute to market stability by reducing the amount of outstanding debt securities in the market.
- M&A Activity: The successful tender offer might encourage other companies to pursue similar strategies to strengthen their balance sheets and streamline their debt structures.
Conclusion:
The Dow Chemical Company’s tender offer to purchase certain debt securities of its subsidiaries, Rohm and Haas and Union Carbide Corporation, has shown promising early results. The successful completion of this offer will result in significant benefits for Dow and its investors, as well as potentially contribute to broader market stability and interest rate trends.
Individual investors holding the tendered securities should follow the steps outlined in the Tender Offer to receive payment for their securities. Meanwhile, the global economy may experience positive ripple effects from this strategic move by Dow, including potential lower interest rates, market stability, and increased M&A activity.
