01 October 2009 16:19 [Source: ICIS news]
About $1bn of the proceeds would be used to pay the outstanding balance of a bridge loan Dow used to partially fund its acquisition of Rohm and Haas earlier this year, it said.
The remaining proceeds, as well as proceeds from future non-strategic definitive divestiture agreements already in place, would be used to pay down other debt, Dow said.
"With this transaction, we have accomplished our objective of fully paying off the bridge loan and eliminating this financing facility," CEO Andrew Liveris said.
"We accomplished this well ahead of our year-end goal, and we remain ahead of schedule on all other financial milestones related to the Rohm and Haas acquisition."
On Wednesday, Dow said it had completed the $660m divestiture of its stake in the Optimal petrochemicals joint venture in Malaysia to that country's state energy major Petronas, with the proceeds also going towards paying down debt.
Dow, which acquired Rohm and Haas in April, has been seeking asset sales to help pay down the debt it took on to complete that deal.
($1 = €0.68)
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