05 May 2009 22:03 [Source: ICIS news]
Correction: In the ICIS news story headlined "US Dow commences $1.635bn stock offering" dated 5 May 2009, please read the headline as "... $1.63bn..." instead of "...$1.635bn..."
HOUSTON (ICIS news)--US major Dow Chemical has started a public stock offering to raise $1.63bn (€1.22bn), which will help pay off debt connected to its $19bn takeover of Rohm and Haas, the company said on Tuesday.
Out of the total $1.625bn, roughly $1bn will be raised through shares offered by Dow, the company said.
Dow will raise the rest of the money through shares offered by accounts and funds managed by Paulson & Co and by trusts created by the Haas Family, the company said. Paulson and the Haas family were the largest shareholders of Rohm and Haas before the takeover.
Dow plans to use the money to repay a portion of the $9.2bn bridge loan, which helped fund the Rohm and Haas deal, the company said.
Dow plans to repay the bridge loan by the end of the year, the company said.
Dow is also considering a possible benchmark offering of senior unsecured notes in a registered public offering, the company said. The offering would be subject to market conditions.
($1 = €0.75)
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