The Dow Chemical Company InterNotes: Key Details and Redemption Options

Strategic Insights -

The Dow Chemical Company has announced the details of its InterNotes, a type of senior unsecured note designed to provide investors with a specific yield and redemption option. The notes, which are due on June 15, 2033 and June 15, 2053, offer a 5.250% and 5.850% semi-annual yield, respectively. The notes can be redeemed at 100% of the principal amount, plus accrued interest, upon a minimum of 10 and a maximum of 60 days' prior notice to the noteholder and the trustee.

Key Takeaways:

  • The Dow Chemical Company InterNotes offer two tranches, one due on June 15, 2033 and another on June 15, 2053.
  • The 5.250% tranche has a face value of $186,000, while the 5.850% tranche has a face value of $661,000.
  • The notes are senior unsecured and can be redeemed at 100% of the principal amount, plus accrued interest.
  • Investment advisers and selected dealers may purchase the notes at a discount to the public offering rate, with a maximum discount of 2.4000% for the 5.850% tranche.
  • The notes are subject to redemption at the option of The Dow Chemical Company, with a minimum of 10 and a maximum of 60 days' prior notice to the noteholder and the trustee.

Statistics:

  • The 5.250% tranche has a semi-annual yield of 5.250% and a face value of $186,000.
  • The 5.850% tranche has a semi-annual yield of 5.850% and a face value of $661,000.
  • The notes can be redeemed at 100% of the principal amount, plus accrued interest.
  • Investment advisers and selected dealers may purchase the notes at a discount to the public offering rate, with a maximum discount of 2.4000% for the 5.850% tranche.

Sources:

  • EDGAR Online via COMTEX
  • The Dow Chemical Company InterNotes prospectus
  • InspereX LLC
  • Citigroup
  • Wells Fargo Advisors