US Dow on track to repay Rohm and Haas loan by year's end

02 September 2009 22:33  [Source: ICIS news]

HOUSTON (ICIS news)--By year's end, US major Dow Chemical could repay the $9.2bn (€6.4bn) bridge loan that helped finance its Rohm and Haas takeover, based on divestments it announced earlier this year, according to a company spokesman on Wednesday.

Dow had $4.1bn left on the loan at the end of the second quarter, said spokesman Bob Plishka.

Since then, the company has completed the sale of its interest in Total Raffinaderij Nederland (TRN) to Total for $800m.

In addition, Dow knocked down a further $2bn through an August debt issue, Plishka said.

The debt issue and the TRN sale brought the bridge-loan debt down to $1.3bn.

Meanwhile, Dow is still waiting for its $1.68bn Morton Salt sale to close.

Another pending deal includes the $660m divestment of its stake in Optimal olefins.

Both pending deals are progressing on schedule, Plishka said.

As such, Dow is on schedule to meet its self-imposed deadline to repay the bridge loan by the end of the year.

"We've met or exceeded every milestone," Plishka said. "The results speak for themselves."

($1 = €0.70)

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