By Andrea Heisinger
New York, May 7 - Dow Chemical Co. priced $6 billion senior unsecured notes (Baa3/BBB-/) in three tranches late Thursday, two days after the deal was announced, a market source said.
Full terms for the notes were not available at press time because of the lateness of pricing.
The $1.75 billion of five-year notes priced to yield Treasuries plus 550 basis points. Price talk was in the 575 bps area, with the spread coming in well below talk.
The $3.25 billion of 10-year notes were sold at a spread of Treasuries plus 525 bps.
A third tranche of $1 billion in 30-year notes was priced at a spread of Treasuries plus 512.5 bps.
Price guidance for both the 10-year and 30-year notes was the 550 bps area.
The sizes of the tranches were fiddled with after being announced midday, a source close to the deal said, although the total amount stayed the same. The five-year notes were upsized from $1.5 billion, while the 10-year tranche was cut from $3.75 billion. The tranche of 30-year notes was increased from $750 million.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc., HSBC Securities and Morgan Stanley & Co. Inc.
Proceeds will be used to repay borrowings under a term loan agreement and for refinancing, renewals, replacements and refunding of debt. On April 1, the company acquired specialty materials company Rohm & Haas.
The diversified chemical company is based in Midland, Mich.
| Issuer: | Dow Chemical Co.
|
| Issue: | Senior unsecured notes
|
| Total amount: | $6 billion
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., HSBC Securities, Morgan Stanley & Co. Inc.
|
| Trade date: | May 7
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| Five-year notes
|
| Amount: | $1.75 billion, increased from $1.5 billion
|
| Maturity: | 2014
|
| Spread: | Treasuries plus 550 bps
|
| Price talk: | 575 bps area
|
|
|
| 10-year notes
|
| Amount: | $3.25 billion, downsized from $3.75 billion
|
| Maturity: | 2019
|
| Spread: | Treasuries plus 525 bps
|
| Price talk: | 550 bps area
|
|
|
| 30-year notes
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | 2039
|
| Spread: | Treasuries plus 512.5 bps
|
| Price talk: | 550 bps area
|
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