By Devika Patel
Knoxville, Tenn., Oct. 27 - Dow Chemical Co. completed a $4 billion private placement of its series A cumulative convertible perpetual preferred stock, according to an 8-K filed Monday with the Securities and Exchange Commission.
Berkshire Hathaway Inc. bought 3 million preferreds for $3 billion and Kuwait Investment Authority bought 1 million preferreds for $1 billion.
The company will pay dividends on the preferreds at a rate of 8.5% per annum, in either cash, common shares or a combination. The dividends are payable quarterly in arrears.
The preferreds are convertible into common stock at $2.50 per share, or 24.2010 shares per preferred.
The company may force conversion after five years under certain conditions.
Dow Chemical is a diversified chemical company based in Midland, Mich.
| Issuer: | Dow Chemical Co.
|
| Issue: | Series A cumulative convertible perpetual preferred stock
|
| Amount: | $4 billion
|
| Dividends: | 8.5%
|
| Shares: | 4 million
|
| Price: | $1,000
|
| Conversion price: | $2.50
|
| Conversion ratio: | 24.2010
|
| Warrants: | No
|
| Investor: | Berkshire Hathaway Inc. (for $3 billion) and Kuwait Investment Authority (for $1 billion)
|
| Settlement date: | Oct. 27
|
| Stock symbol: | NYSE: DOW
|
| Stock price: | $22.81 at close Oct. 27
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
