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The Dow Chemical Company InterNotes: A Comprehensive Review

Strategic Insights

— 1 min read

The Dow Chemical Company has announced the release of new InterNotes, a type of senior unsecured note, with features such as callability and semi-annual interest payments. The notes will be issued in two tranches, with varying rates and maturity dates. Investors purchasing through selected dealers may be eligible for discounts of up to 2.4000% off the public offering price.

Key Takeaways:

  • The Dow Chemical Company InterNotes will be issued in two tranches with different interest rates and maturity dates: 1.800% and 3.150% for the 2023 and 2053 tranches, respectively.
  • The notes will be redeemable at the option of The Dow Chemical Company at a redemption price of 100% of the principal amount plus accrued interest, upon not less than 10 nor more than 60 days prior notice to the noteholder and the trustee.
  • Investment advisers and selected dealers may purchase the notes at a discount of up to 2.4000% off the public offering price.
  • Notes purchased by selected dealers in level-fee and retirement accounts may be sold to such accounts at a discount of up to 2.4000% to the public offering price, with no portion of the discount retained as compensation.
  • The joint lead managers and lead agents for the offering are InspereX LLC, with Citigroup and Wells Fargo Advisors serving as agents.
  • The semi-annual interest payment dates for the 2023 and 2053 tranches are June 15 and December 15, respectively.

Statistics:

  • The principal amount of the 2023 tranche is $24.21, with a yield to maturity of 1.800%.
  • The principal amount of the 2053 tranche is $26.51, with a yield to maturity of 3.150%.
  • The equal discount offered to selected dealers for both tranches is up to 0.8500% and 1.2500% for the 2023 and 2053 tranches, respectively.
  • The first call date for the 2023 tranche is 12/15/2023, with subsequent callability at any time thereafter.

Sources:

  • COMTEX (via Edgar Online) [https://www.comtex.com/](https://www.comtex.com/)
  • The Dow Chemical Company Preliminary Pricing Supplement [Not provided as available upon request]

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