Dow Chemical to redeem $1.02 billion 3.15%, 3.5% notes due 2024

By Wendy Van Sickle

Columbus, Ohio, May 3 – Dow Inc. subsidiary Dow Chemical Co. plans a full redemption of its 3.5% notes due October 2024 and of its 3.15% notes due May 2024, according to a press release.

As of Monday, $1,019,048,000 total of the notes were outstanding.

The $207,649,000 of 3.15% notes will be redeemed on May 18 at the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest discounted at Treasuries plus 20 basis points.

The $811,399,000 of 3.5% notes will be redeemed on June 2 at the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest discounted at Treasuries plus 20 bps.

Bank of New York Mellon Trust Co., NA s the trustee.

“This proactive liability management action, squarely aligned to Dow’s capital allocation priorities, will reduce gross debt by more than $1 billion and help ensure Dow maintains a strong and flexible capital structure across the economic cycle,” said Howard Ungerleider, president and chief financial officer of Dow, said in the release. “Upon completion, Dow’s annual interest expense will decrease by $35 million, and we will have no substantive long-term debt maturities due until the end of 2025.”

Dow is a specialty chemical company based in Midland, Mich.

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