Still no whiff of a Dow Ag sale from Dow Chemical (DOW)
The Detroit Free Press Reports:
Dow Chemical Co., the largest U.S. chemical maker, said it is ahead of schedule on its plan to repay by year-end a $9.2-billion bridge loan that helped finance the April acquisition of Rohm & Haas Co.
The sale originally announced in May, to reflect inventory values, Bob Plishka, a spokesman at Midland-based Dow, said Tuesday in an interview.
Proceeds will be used to repay the bridge loan, which had a balance of $4.1 billion at the end of June, he said.
CEO Andrew Liveris secured agreements to sell $3.3 billion of assets, including the refining stake, which were among a dozen units valued at as much as $26 billion that the company considered divesting.
The company spent most of a $2.75-billion debt issue in August on payments, trimming the loan’s balance to about $2.1 billion, Plishka said.
“We have more gross proceeds due us from definitive divestiture agreements already in place than the outstanding balance of the bridge loan,” Plishka said. “We are way ahead of schedule.”
The sales of Morton Salt for $1.68 billion and a stake in the Optimal Group of Companies for $660 million are expected to be approved by regulators and close this year, Plishka said.
Disclosure (“none” means no position):Long DOW