DowDuPont Inc. announced the pricing of eight series of senior unsecured notes totaling $12.7 billion.
After the previously announced separations and distributions of Dow Holdings Inc., which is expected to occur on April 1, 2019, and of Corteva, Inc., which is expected to take place on June 1, 2019, DowDuPont expects to retain only its specialty products business and will then change its name to DuPont.
The offering is expected to close on Nov. 28, subject to customary closing conditions.
Each series of notes will be a senior unsecured obligation of the company and will rank equally with the company’s future senior unsecured debt outstanding from time to time. The notes will not be guaranteed by any of the company’s subsidiaries.
The company intends to use the net proceeds of the offering, together with borrowings under term loan facilities to reduce outstanding liabilities that would otherwise be allocated to its subsidiaries, Dow and Corteva, by approximately $2 billion and $10.1 billion, respectively.
DuPont announced that Corteva will handle both companies’ pension program, citing the strong balance sheet of Corteva, the combined agriculture science business of Dow and DuPont.
Proceeds will also fund the repurchase up to $3 billion of the company’s common stock under a previously announced share repurchase program and pay any related premiums, fees and expenses. In connection with the deleveraging of Corteva and DuPont. On Nov. 13, DuPont that it has commenced a cash tender offer for any and all of certain series of its outstanding notes.
The offering includes accompanying documents on transactions. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov.
