Dow amends Rohm and Haas loan, may issue $3bn in debt

06 March 2009 20:04  [Source: ICIS news]

HOUSTON (ICIS news)--Dow Chemical has amended the terms of a critical bridge loan and has prepared for a possible $3.0bn (€2.4bn) debt offering, which together could advance its troubled $18.8bn takeover of Rohm and Haas, the US company said on Friday.

Dow would issue the debt - up to $3.0bn - within 90 days of closing the Rohm and Haas deal, the company said in a regulatory filing.

In addition, Dow would have the option of extending by one year the bridge loan beyond its original maturity date of 14 April 2010.

Dow can extend the maturity of the loan as long as it remains in compliance with the certain covenants and if the principal is reduced to $8bn, the company said.

The amount of the loan was also lowered to $12.5bn from $13.0bn, Dow said.

The bridge loan became a more prominent part of the Rohm and Haas deal after a proposed joint venture fell apart between Dow and Petrochemical Industries Co (PIC) of Kuwait. Dow was to receive $9bn from the PIC deal.

After the joint venture collapsed, Dow missed a 27 January deadline to close its takeover of Rohm and Haas. Rohm and Haas then sued Dow in Delaware Chancery Court, and that trial starts on Monday.

Rohm and Haas and Dow confirmed earlier on Friday that they are in talks concerning the lawsuit and the merger.

($1 = €0.80)

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By: Al Greenwood
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