Dow Chemical Sells $6 Billion in Debt – Zacks Tale of the Tape
Source: http://www.zacks.com/stock/news/20006/Dow+Chemical+Sells+%246+Billion+in+Debt+-+Zacks+Tale+of+the+TapePosted on Friday, May 8th, 2009 | In Market Commentary, Stocks to Watch
Dow Chemical Co. (DOW) said it would sell $6 billion senior unsecured notes to buy out preferred shares used for its recent acquisition of Rohm & Haas in a move that will reduce its debt burden significantly.
The Midland, Michigan-based company had borrowed $9.2 billion for the takeover last month and pledged to pay off the debt paid by the end of this year. The sale of debt securities includes $1.75 billion in 5-year notes, $3.25 billion in 10-year notes and a $1 billion 30-year bond issue.
The sale also helps Dow in saving substantially in dividend payments as perpetual preferred shareholders are entitled to about 15% in payouts. Shares of the company were up more than 6% to $16.77 in morning trade on the New York Stock Exchnage.
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