DuPont will pump nearly $3 billion into its defined benefit pension plan as it prepares for the merger with Dow and subsequent spin-offs of the combined company into three entities.
The company made the disclosure in a Securities and Exchange Commission filing.
Earlier, DuPont had filed a nearly $2 billion debt offering for the defined benefit plans that make monthly payments to retirees.
[pdf-embedder url=”http://delawarebusinessnow.com/wp-content/uploads/2018/05/DuPont-pensions.pdf” title=”DuPont pensions”]
In rating the debt offering, Moody’s posted a negative outlook, citing the uncertainties of the spin-off process and the financial strength of the company or companies that would be responsible for the debt.
For its part, DuPont has stated that the financial profiles of companies will be spun off in the merger would match the rather conservative financial structure of DuPont.
Retirees have expressed concern over the use of debt to finance pension liabilities. Companies and units of government typically do not have funds that match those liabilities.
DuPont earlier froze its pension plan as it converts over to a 401K that matches employee contributions.
Moody’s rates pension debt issue and issues negative outlook
