Dow Announces Tender Offer for Debt Securities
The Dow Chemical Company (TDCC), a wholly owned subsidiary of Dow Inc. (NYSE: DOW), has announced a cash tender offer to purchase up to $1.0 billion of its debt securities and those of its subsidiaries Rohm and Haas and Union Carbide
The tender offer includes specific Acceptance Sublimits for certain securities: up to €500,000,000 for the 0.500% Notes due 2027 and up to $100,000,000 for the 9.400% Notes due 2039. The early participation date is March 10, 2025, with expiration on March 25, 2025.
Holders who tender securities by the early participation date will receive the Total Consideration plus accrued interest, while those who tender after will only receive the Tender Offer Consideration (Total Consideration minus Early Participation Amount). The offer is subject to TDCC having issued sufficient debt securities to fund the purchase (Financing Condition).
La Dow Chemical Company (TDCC), una controllata interamente di Dow Inc. (NYSE: DOW), ha annunciato un offerta pubblica di acquisto in contante per acquistare fino a 1,0 miliardi di dollari dei suoi titoli di debito e di quelli delle sue controllate Rohm e Haas e Union Carbide.
L'offerta include specifici Limiti di Accettazione per alcuni titoli: fino a €500.000.000 per le Note allo 0,500% in scadenza nel 2027 e fino a $100.000.000 per le Note al 9,400% in scadenza nel 2039. La data di partecipazione anticipata è il 10 marzo 2025, con scadenza il 25 marzo 2025.
I detentori che presenteranno titoli entro la data di partecipazione anticipata riceveranno il Compenso Totale più gli interessi maturati, mentre coloro che presenteranno dopo riceveranno solo il Compenso dell'Offerta (Compenso Totale meno l'importo della Partecipazione Anticipata). L'offerta è soggetta all'emissione da parte di TDCC di titoli di debito sufficienti a finanziare l'acquisto (Condizione di Finanziamento).
La Dow Chemical Company (TDCC), una subsidiaria de propiedad total de Dow Inc. (NYSE: DOW), ha anunciado una oferta de compra en efectivo para adquirir hasta 1.0 mil millones de dólares de sus valores de deuda y los de sus subsidiarias Rohm y Haas y Union Carbide.
La oferta incluye Sublímites de Aceptación específicos para ciertos valores: hasta €500,000,000 para las Notas al 0.500% con vencimiento en 2027 y hasta $100,000,000 para las Notas al 9.400% con vencimiento en 2039. La fecha de participación anticipada es el 10 de marzo de 2025, con vencimiento el 25 de marzo de 2025.
Los tenedores que presenten valores antes de la fecha de participación anticipada recibirán la Consideración Total más los intereses acumulados, mientras que aquellos que presenten después solo recibirán la Consideración de la Oferta (Consideración Total menos el Monto de Participación Anticipada). La oferta está sujeta a que TDCC haya emitido suficientes valores de deuda para financiar la compra (Condición de Financiamiento).
다우 화학 회사(TDCC)는 다우 주식회사(NYSE: DOW)의 완전 자회사로, 현금 입찰 제안을 발표하여 자사 및 자회사인 로흄 앤 하스(Rohm and Haas), 유니온 카바이드(Union Carbide)의 부채 증권을 최대 10억 달러까지 구매할 예정입니다.
입찰 제안에는 특정 증권에 대한 수용 한도가 포함되어 있습니다: 2027년 만기 0.500% 노트에 대해 최대 €500,000,000 및 2039년 만기 9.400% 노트에 대해 최대 $100,000,000입니다. 조기 참여 날짜는 2025년 3월 10일이며, 만료일은 2025년 3월 25일입니다.
조기 참여 날짜까지 증권을 제출한 보유자는 총 보상과 누적 이자를 받을 수 있으며, 이후에 제출한 경우에는 입찰 제안 보상(총 보상에서 조기 참여 금액을 뺀 금액)만 받을 수 있습니다. 이 제안은 TDCC가 구매를 위한 충분한 부채 증권을 발행해야 하는 조건이 있습니다(재정 조건).
La Dow Chemical Company (TDCC), une filiale à part entière de Dow Inc. (NYSE: DOW), a annoncé une offre publique d'achat en espèces pour acquérir jusqu'à 1,0 milliard de dollars de ses titres de créance ainsi que ceux de ses filiales Rohm et Haas et Union Carbide.
L'offre comprend des plafonds d'acceptation spécifiques pour certains titres : jusqu'à 500 000 000 € pour les Obligations à 0,500 % arrivant à échéance en 2027 et jusqu'à 100 000 000 $ pour les Obligations à 9,400 % arrivant à échéance en 2039. La date de participation anticipée est le 10 mars 2025, avec expiration le 25 mars 2025.
Les détenteurs qui soumettent des titres avant la date de participation anticipée recevront la Considération Totale plus les intérêts accumulés, tandis que ceux qui soumettent après ne recevront que la Considération de l'Offre (Considération Totale moins le Montant de Participation Anticipée). L'offre est soumise à la condition que TDCC ait émis suffisamment de titres de créance pour financer l'achat (Condition de Financement).
Die Dow Chemical Company (TDCC), eine hundertprozentige Tochtergesellschaft von Dow Inc. (NYSE: DOW), hat ein Barangebot angekündigt, um bis zu 1,0 Milliarden US-Dollar ihrer Schuldtitel sowie die ihrer Tochtergesellschaften Rohm und Haas und Union Carbide zu erwerben.
Das Angebot umfasst spezifische Akzeptanzobergrenzen für bestimmte Wertpapiere: bis zu €500.000.000 für die 0,500% Anleihen mit Fälligkeit 2027 und bis zu $100.000.000 für die 9,400% Anleihen mit Fälligkeit 2039. Das Datum für die vorzeitige Teilnahme ist der 10. März 2025, mit Ablauf am 25. März 2025.
Inhaber, die Wertpapiere bis zum Datum der vorzeitigen Teilnahme einreichen, erhalten die Gesamtsumme plus aufgelaufene Zinsen, während diejenigen, die danach einreichen, nur die Angebotssumme (Gesamtsumme abzüglich des Betrags der vorzeitigen Teilnahme) erhalten. Das Angebot unterliegt der Bedingung, dass TDCC genügend Schuldtitel ausgegeben hat, um den Kauf zu finanzieren (Finanzierungsbedingung).
- Debt restructuring initiative to potentially improve balance sheet
- Prioritized approach to debt management with clear acceptance hierarchy
- Flexibility to adjust tender cap and acceptance sublimits
- New debt issuance required to fund the tender offer (Financing Condition)
- Potential for prorated acceptance if oversubscribed
Insights
Dow Chemical Company's announcement of a $1.0 billion tender offer for various debt securities represents a significant and strategic financial maneuver that merits investor attention. This move isn't simply routine debt management—it's a calculated refinancing strategy designed to optimize Dow's debt structure in the current interest rate environment.
The tender offer's structure reveals several key insights about Dow's financial strategy. First, the company is explicitly targeting high-coupon debt, particularly the 9.400% Notes due 2039, which have an acceptance sublimit of $100 million. This focus on retiring expensive long-dated debt could generate substantial interest savings. For perspective, replacing just $100 million of these notes with new debt at current market rates (approximately 4.5-5.0% for similar maturities) could save Dow roughly $4-5 million annually in interest expenses—a meaningful contribution to bottom-line performance.
The conditional nature of this tender offer is particularly telling. By making the offer contingent upon issuing new debt securities, Dow is executing a classic "refinancing" rather than debt reduction. This suggests management sees an opportunity to capitalize on the current rate environment before potential market shifts occur. The early participation incentive structure, with a premium for holders who tender by March 10, further indicates Dow's desire to quickly secure participation.
For investors, this liability management exercise signals several positive developments:
- Potential improvement in interest coverage ratios and reduced interest expense burden
- Extension of Dow's debt maturity profile, enhancing financial flexibility
- Proactive management of future refinancing risks, particularly for the high-coupon 2039 notes
- Possible positive implications for credit metrics, potentially supporting future rating improvements
The inclusion of debt from subsidiaries Rohm and Haas and Union Carbide suggests Dow is also streamlining its liability structure across the organization. This consolidated approach to debt management typically enhances financial transparency and operational efficiency.
While this transaction won't dramatically alter Dow's overall debt profile (representing less than 10% of its total debt), it demonstrates management's commitment to optimizing capital structure even when wholesale debt reduction isn't the primary objective. For investors, this represents exactly the type of incremental financial management that builds long-term value through improved capital efficiency and reduced financing costs.
TDCC is offering to purchase the Securities listed in Table I below for an aggregate purchase consideration (
TABLE I | ||||||||||
Title of | Security |
Original | Principal |
Purchase Acceptance | Acceptance | Early | Reference Security / | Bloomberg | Fixed Spread | |
| ISIN:
| TDCC | 1 | Interpolated Rate | IRSB EU | +25 | ||||
| CUSIP:
ISIN:
| Rohm and Haas | None | 2 |
| PX1 | +55 | |||
| CUSIP:
ISIN: US260543BJ10
| TDCC | None | 3 |
| PX1 | +40 | |||
| CUSIP:
ISIN:
| TDCC | None | 4 |
| PX1 | +65 | |||
| CUSIP:
ISIN:
| TDCC | 5 |
| PX1 | +130 | ||||
| CUSIP:
ISIN: | UCC | None | 6 |
| PX1 | +155 | |||
(1) | The Total Consideration (as defined in the offer to purchase) will be determined by taking into account the maturity date or, if applicable, the par call date for each series of Securities. See Schedules A-1 and A-2 of the Offer to Purchase for an overview of the calculation of the Total Consideration (including the par call detail) with respect to the Securities. |
(2) | The Total Consideration payable for each |
The following is a brief summary of certain key elements of the Tender Offer:
- Holders who validly tender and who do not validly withdraw their Securities at or prior to the Early Participation Date, and whose Securities are accepted for purchase, will receive the Total Consideration, together with accrued interest.
- Holders who validly tender their Securities after 5:00 p.m.,
New York City time on the Early Participation Date but at or prior to the expiration date, and whose Securities are accepted for purchase, will only be eligible to receive the Tender Offer Consideration (as defined in the Offer to Purchase), which is equal to the Total Consideration less the Early Participation Amount, together with accrued interest. - Tenders of the Securities may be validly withdrawn at any time at or prior to 5:00 p.m.,
New York City time, on March 10, 2025 (subject to extension), but not thereafter. - TDCC reserves the right, but is under no obligation, to increase or decrease the Tender Cap or increase, decrease or eliminate any Acceptance Sublimit. In the event of any such change, TDCC may, but will not be obligated (except as required by applicable law) to, extend one or more of the Early Participation Date, the withdrawal date or the expiration date.
- If the Tender Offer is oversubscribed, TDCC will accept for payment all Securities validly tendered in accordance with the acceptance priority levels set forth in Table I, subject to the Tender Cap and the Acceptance Sublimits. However, all Securities validly tendered prior to or at the Early Participation Date will have priority over the Securities validly tendered after the Early Participation Date, regardless of the acceptance priority levels and Acceptance Sublimits. If there are sufficient remaining funds to purchase some, but not all, of the remaining validly tendered Securities at any acceptance priority level, TDCC will accept for payment such tendered Securities on a prorated basis. If the purchase of any validly tendered Securities which are subject to the Acceptance Sublimits would cause the aggregate principal amounts of such Securities purchased to exceed the applicable Acceptance Sublimit, then if we accept such Securities in the Tender Offer, any such Securities accepted for purchase will be accepted for tender on a prorated basis as well.
- TDCC's obligation to accept for purchase, and to pay for, the Securities validly tendered pursuant to the Tender Offer is subject to, and conditioned upon, TDCC having issued debt securities in an amount sufficient to fund the purchase of the Securities validly tendered in the Tender Offer up to the Tender Cap, to pay any accrued interest on the Securities purchased and to pay all fees and expenses of the Tender Offer, on terms and conditions reasonably satisfactory to TDCC (the "Financing Condition").
TDCC has retained Citigroup Global Markets Inc. and HSBC Securities (
None of Dow Inc., TDCC, Rohm and Haas, UCC, the Depositary and Information Agent, the Dealer Managers or the trustee under the indentures governing the Securities, or any of their respective affiliates, is making any recommendation as to whether holders should tender or refrain from tendering all or any portion of their Securities in response to the Tender Offer, and no one has been authorized by any of them to make such a recommendation. Holders must make their own decision as to whether to tender their Securities and, if so, the principal amount of Securities as to which action is to be taken. Holders should consult their tax, accounting, financial and legal advisers regarding the tax, accounting, financial and legal consequences of participating or declining to participate in the Tender Offer.
The Tender Offer is only being made pursuant to the Offer to Purchase. This press release is qualified in its entirety by the Offer to Purchase. This press release is neither an Offer to Purchase or sell nor a solicitation of an Offer to Purchase or sell any Securities in the Tender Offer or any other Securities of TDCC, Rohm and Haas or UCC. The Tender Offer is not being made to holders of Securities in any jurisdiction in which the making or acceptance thereof would not be in compliance with the Securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offer is required to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of TDCC, Rohm and Haas or UCC by the Dealer Managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately
Rohm and Haas is a chemicals and polymers company and has been a wholly owned subsidiary of TDCC since its acquisition on April 1, 2009.
Union Carbide Corporation is a chemicals and polymers company that has been a wholly-owned subsidiary of TDCC since February 6, 2001.
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Cautionary Statement about Forward-Looking Statements
Certain statements in this press release are "forward-looking statements." Such statements often address expected future business and financial performance, financial condition, and other matters, and include statements describing the completion of the Tender Offer, and often contain words or phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.
Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflicts between
Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in Dow's and TDCC's combined Annual Report on Form 10-K for the year ended December 31, 2024. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow assumes no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.
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SOURCE The Dow Chemical Company