Dow announces the Early Tender Results of its Cash Tender Offers

MIDLAND, Mich.–(BUSINESS WIRE)–The Dow Chemical Company (“TDCC”), a wholly-owned subsidiary of Dow Inc. (NYSE: DOW), announced today the early results of its previously-announced cash tender offers (each, individually with respect to a series of Notes, a “Tender Offer” with respect to such series, and collectively, the “Tender Offers”) to purchase certain of its debt securities and certain debt securities of Union Carbide Corporation (“Union Carbide”), a wholly-owned subsidiary of TDCC, listed in the table below (collectively, the “Notes”) in an aggregate purchase price (excluding accrued interest) of up to $550 million (the “Maximum Tender Offer Amount”).

According to information provided by Global Bondholder Services Corporation, the depositary and information agent, $909,981,000 aggregate principal amount of the Notes were validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on August 28, 2020 (the “Early Tender Deadline”).

The following table sets forth certain information regarding the Notes and the Tender Offers, including the aggregate principal amount of each series of Notes that was validly tendered and not validly withdrawn at or prior to the Early Tender Deadline:

Title of Notes

CUSIP / ISIN

Original

Issuer

Total Principal

Amount

Outstanding

(SecReg & 144A)

Acceptance

Priority

Level

Tender Cap(1)

(Aggregate Principal

Amount)

Aggregate Principal

Amount Tendered as

of the Early Tender

Deadline

7.375% Senior

Notes due 2023

260543BE2

TDCC

$150,000,000

1

$75,000,000

$29,289,000

7.875% Senior

Notes due 2023

905572AD5

Union

Carbide

$175,000,000

2

$85,000,000

$45,655,000

7.500% Senior

Notes due 2025

905581AR5

Union

Carbide

$150,000,000

3

$50,000,000

$36,895,000

3.150% Senior

Notes due 2024

260543CT8

260543CS0 (144A)

U26054KJ1 (Reg S)

TDCC

$500,000,000

4

None

$292,351,000

3.500% Senior

Notes due 2024

260543CJ0

TDCC

$900,000,000

5

None

$261,856,000

3.625% Senior

Notes due 2026

260543CX9

260543CW1 (144A)

U26054KL6 (Reg S)

TDCC

$750,000,000

6

$75,000,000

$243,935,000

(1)

The Tender Cap for each series of Notes represents the maximum aggregate purchase price of the applicable series of Notes that will be accepted for purchase.

As of the Early Tender Deadline, the Maximum Tender Offer Amount was met. As such, no additional Notes tendered after the Early Tender Deadline will be accepted for purchase in the Tender Offers.

The withdrawal deadline for the Tender Offers was 5:00 p.m., New York City time, on August 28, 2020 and has not been extended. Accordingly, previously tendered Notes may not be withdrawn, subject to applicable law. The pricing of the Notes will occur at 10:00 a.m., New York City time, today.

Our obligation to accept for payment and to pay for any of the Notes validly tendered in the Tender Offers is not subject to any minimum purchase price of Notes in the aggregate or of any series being tendered, but is subject to the satisfaction or waiver of a number of conditions described in the Offer to Purchase. The financing condition described in the Offer to Purchase was satisfied on August 26, 2020, upon Dow’s consummation of an offering of senior debt securities in an aggregate principal amount of $2.0 billion. Dow reserves the right, subject to applicable law, to amend, extend or terminate any of the Tender Offers at any time in its sole discretion.

TDCC has retained BofA Securities to act as lead dealer manager in connection with the Tender Offers (the “Lead Dealer Manager”) and BNP Paribas Securities Corp. and HSBC Securities (USA) Inc. to act as Co-Dealer Managers (the “Co-Dealer Managers” and, together with the Lead Dealer Manager, the “Dealer Managers”). Questions and requests for assistance regarding the terms of the Tender Offers should be directed to BofA Securities at (980) 387-3907 (collect) or [email protected] (email); BNP Paribas Securities Corp. at (888) 210-4358 (toll-free); and HSBC Securities (USA) Inc. at (866) 811-8049 (toll-free). Copies of the Offer to Purchase and any amendments or supplements to the foregoing may be obtained from Global Bondholder Services Corporation, the depositary and information agent for the Tender Offers (the “Depositary and Information Agent”), by calling (212) 430-3774 (for banks and brokers only) or (866) 470-4300 (toll-free) (for all others) or via [email protected].

None of TDCC, Union Carbide, the Depositary and Information Agent, the Dealer Managers or the trustee under the indenture governing the Notes, or any of their respective affiliates, is making any recommendation as to whether Holders should tender or refrain from tendering all or any portion of their Notes in response to the Tender Offers, and no one has been authorized by any of them to make such a recommendation. Holders must make their own decision as to whether to tender their Notes and, if so, the principal amount of Notes as to which action is to be taken. Holders should consult their tax, accounting, financial and legal advisers regarding the tax, accounting, financial and legal consequences of participating or declining to participate in the Tender Offers.

The Tender Offers are only being made pursuant to the Offer to Purchase. This press release is neither an offer to purchase or sell nor a solicitation of an offer to purchase or sell any Notes in the Tender Offers or any other securities of TDCC and Union Carbide. The Tender Offers are not being made to Holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers are required to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of TDCC or Union Carbide by the Dealer Managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

About Dow

Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure and consumer care. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people. Dow delivered sales of approximately $43 billion in 2019. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

Union Carbide Corporation is a chemicals and polymers company that has been a wholly-owned subsidiary of The Dow Chemical Company since 2001.

Cautionary Statement about Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance, financial condition, and other matters, and often contain words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements.

Forward-looking statements include, but are not limited to: expectations as to future sales of Dow’s products; the ability to protect Dow’s intellectual property in the United States and abroad; estimates regarding Dow’s capital requirements and need for and availability of financing; estimates of Dow’s expenses, future revenues and profitability; estimates of the size of the markets for Dow’s products and services and Dow’s ability to compete in such markets; expectations related to the rate and degree of market acceptance of Dow’s products; the outcome of certain Dow contingencies, such as litigation and environmental matters; estimates of the success of competing technologies that may become available; the continuing global and regional economic impacts of the coronavirus disease 2019 (“COVID-19”) pandemic and crude oil supply and price volatility; estimates regarding benefits achieved through contemplated restructuring activities, such as workforce reduction, exit and disposal activities; and expectations regarding the benefits and costs associated with each of the foregoing.

Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Forward-looking statements are based on certain assumptions and expectations of future events which may not be realized and speak only as of the date the statements were made. In addition, forward-looking statements also involve risks, uncertainties and other factors that are beyond Dow’s control that could cause Dow’s actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. These factors include, but are not limited to: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war; weather events and natural disasters; ability to protect, defend and enforce Dow’s intellectual property rights; increased competition; changes in relationships with Dow’s significant customers and suppliers; unanticipated expenses such as litigation or legal settlement expenses; unanticipated business disruptions; Dow’s ability to predict, identify and interpret changes in consumer preferences and demand; Dow’s ability to complete proposed divestitures or acquisitions; Dow’s ability to realize the expected benefits of acquisitions if they are completed; the availability of financing to Dow in the future and the terms and conditions of such financing; disruptions in Dow’s information technology networks and systems; the continuing risks related to the COVID-19 pandemic and crude oil supply and price volatility; and Dow’s ability to realize the expected benefits of restructuring activities if they are approved and completed. Additionally, there may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business.

Risks related to achieving the anticipated benefits of Dow’s separation from DowDuPont include, but are not limited to, a number of conditions outside the control of Dow, including risks related to: (i) Dow’s inability to achieve some or all of the benefits that it expects to receive from the separation from DowDuPont; (ii) certain tax risks associated with the separation; (iii) the failure of Dow’s pro forma financial information to be a reliable indicator of Dow’s future results; (iv) Dow’s inability to receive third-party consents required under the separation agreement; (v) non-compete restrictions under the separation agreement; (vi) receipt of less favorable terms in the commercial agreements Dow entered into with DuPont and Corteva, Inc. (“Corteva”), including restrictions under intellectual property cross-license agreements, than Dow would have received from an unaffiliated third party; and (vii) Dow’s obligation to indemnify DuPont and/or Corteva for certain liabilities.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. For a more detailed discussion of Dow’s risks and uncertainties, see the section titled “Risk Factors” contained in Part II, Item 1A of the combined Dow Inc. and TDCC Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020 and Part I, Item 1A of the combined Dow Inc. and TDCC Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Dow Inc. and TDCC assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events or otherwise, except as required by securities and other applicable laws.

Contacts

MEDIA:
Kyle Bandlow

+1.989.638.2417

[email protected]

INVESTORS:
Colleen Kay

+1.989.636.0920

[email protected]

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