Dow pay down $1.5 billion in debt

Dow to pay down $1.5 billion in debt

3:44 PM, 8th June 2011
Dow to pay down $1.5 billion in debt
Bill Weideman, Executive VP and Chief Financial Officer, Dow.

MIDLAND, US: The Dow Chemical Company recently said that it is launching a cash tender offer for approximately $ 750 million aggregate principal amount of notes listed by Dow and its subsidiaries. This announcement follows a series of debt reduction activities the company plans to execute in the first quarter, including the pay-off of $ 800 million of matured debt and more than $ 150 million of InterNotes. Taken together, these actions will enable Dow to reduce its overall debt by more than $ 1.5 billion.

 

“Our actions this quarter will enable us to deliver a structural reduction in interest expense, and the result is accretive to shareholders. It’s also important to note that, after retiring this debt, we will still have a cash balance that is higher than our historical average, which illustrates our strengthened capital structure and enhanced financial flexibility,” said Bill Weideman, Executive VP and Chief Financial Officer, Dow. The cash tender offer addresses high-coupon debt, some of which was issued during the global economic crisis of 2009.

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