Published on 2/7/2024 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Dow Chemical sells $1.25 billion of notes due 2034, 2054
By Wendy Van Sickle
Columbus, Ohio, Feb. 7 – Dow Chemical Co. sold $1.25 billion of notes in a two-part offering (Baa1/BBB/BBB+) in the Wednesday market, according to an FWP filing with the Securities and Exchange Commission.
The company priced $600 million of 5.15% notes due 2034 at 99.983 to yield 5.152%, or Treasuries plus 105 basis points
The company also priced $650 million of 5.6% notes due 2054. The notes priced with a 99.653 discount to yield 5.624%, or at a spread of 130 bps over the benchmark Treasury.
BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, SMBC Nikko Securities America, Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets LLC, Standard Chartered Bank and TD Securities (USA) LLC are the bookrunners.
Proceeds will be used to finance or refinance existing or new green projects.
Dow is a specialty chemical company based in Midland, Mich.
| Issuer: | Dow Chemical Co.
|
| Amount: | $1.25 billion
|
| Issue: | Notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, SMBC Nikko Securities America, Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets LLC, Standard Chartered Bank and TD Securities (USA) LLC
|
| Senior co-managers: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Santander US Capital Markets LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., Blaylock Van, LLC, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co, NA
|
| Counsel to issuer: | Shearman & Sterling LLP
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| Counsel to underwriters: | Mayer Brown LLP
|
| Change of control: | At 101
|
| Trade date: | Feb. 7
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
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| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| 2034 notes
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| Amount: | $600 million
|
| Maturity: | Feb. 15, 2034
|
| Coupon: | 5.15%
|
| Price: | 99.983
|
| Yield: | 5.152%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Nov. 15, 2033; thereafter at par
|
| Cusip: | 260543DJ9
|
|
|
| 2054 notes
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| Amount: | $650 million
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| Maturity: | Feb. 15, 2054
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| Coupon: | 5.6%
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| Price: | 99.653
|
| Yield: | 5.624%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Aug. 15, 2053; thereafter at par
|
| Cusip: | 260543DK6
|
|
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