The Dow Chemical Company (NYSE:DOW) sold $2 billion in new 10 and 30 year bonds. The 10 year bond for $1.25 billion is due in 2021 and is priced at 2.15 percentage points over comparable government debt to yield 4.174%. However, the 30 year bond for $750 million is due in 2041 and is priced at 2.20 percentage points over Treasurys to yield 5.259%.
The net proceeds will be used for general corporate purposes, including fund pension contributions, finance capital expenditures and working capital, and to pursue growth initiatives, whether through acquisitions, joint ventures or otherwise.
As of September 30, 2011, cash and cash equivalent amounted to $2,206 million versus $7,039 million at the end of December 31, 2010. Net debt-to-capital was 40.9% versus 41.6% in the prior quarter.
Recently, DOW earned 69 cents per share in the third quarter of 2011, ahead of the Zacks Consensus Estimate of 64 cents per share as well as last year’s 45 cents per share. However, including one-time charges, the company earned 62 cents per share compared with 54 cents per share in the year-ago quarter.
