Dow Chemical 2013 Annual Report Download - page 135

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On March 8, 2012, the Company redeemed $1.25 billion aggregate principal amount of 4.85 percent notes due August 15,
2012, at a price of 101.8 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this
redemption, the Company realized a $24 million pretax loss on the early extinguishment of debt, included in "Sundry income
(expense) - net" in the consolidated statements of income and reflected in Corporate.
During 2012, the Company issued $281 million aggregate principal amount of InterNotes with varying maturities in 2017, 2019
and 2022, at various interest rates averaging 2.95 percent; and approximately $367 million of long-term debt was entered into
by consolidated variable interest entities.
During 2012, the Company redeemed $37 million of pollution control/industrial revenue bonds that matured on January 1,
2012, repurchased $105 million of pollution control/industrial revenue tax-exempt bonds that were subject to re-marketing;
redeemed Euro 253 million of notes that matured on September 19, 2012 ($317 million equivalent); and redeemed $900 million
of notes that matured on October 1, 2012.
2011 Activity
On November 14, 2011, the Company issued $2.0 billion of debt securities in a public offering. The offering included
$1.25 billion aggregate principal amount of 4.125 percent notes due 2021 and $750 million aggregate principal amount of 5.25
percent notes due 2041.
On March 22, 2011, the Company concluded cash tender offers for $1.5 billion aggregate principal amount of certain notes
issued by the Company. As a result of the tender offers, the Company redeemed $1.5 billion of notes and recognized a
$472 million pretax loss on early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated
statements of income and reflected in Corporate.
During 2011, the Company redeemed $800 million of notes that matured on February 1, 2011; Euro 500 million of notes that
matured on May 27, 2011 ($707 million equivalent); $250 million of floating rate notes that matured on August 8, 2011; and
$1,538 million of InterNotes, which resulted in a $10 million pretax loss on early extinguishment of debt, included in "Sundry
income (expense) - net" in the consolidated statements of income and reflected in Corporate.
During 2011, the Company issued $436 million of InterNotes with varying maturities in 2016, 2018 and 2021, at various
interest rates averaging 3.71 percent; and approximately $1.2 billion of long-term debt was entered into by consolidated
variable interest entities, including the refinancing of short-term notes payable.
Available Credit Facilities
The following table summarizes the Company's credit facilities:
Committed and Available Credit Facilities at December 31, 2013
In millions Effective Date
Committed
Credit
Credit
Available Maturity Date Interest
Five Year Competitive Advance and Revolving
Credit Facility October 2011 $ 5,000 $ 5,000 October 2016 Floating rate
Bilateral Revolving Credit Facility October 2012 170 170 October 2016 Floating rate
Bilateral Revolving Credit Facility March 2013 100 100 March 2014 Floating rate
Bilateral Revolving Credit Facility March 2013 300 300 October 2016 Floating rate
Term Loan Facility March 2013 300 — March 2016 Floating rate
Bilateral Revolving Credit Facility April 2013 200 200 April 2016 Floating rate
Bilateral Revolving Credit Facility October 2013 200 200 October 2016 Floating rate
Bilateral Revolving Credit Facility October 2013 100 100 October 2016 Floating rate
Total Committed and Available Credit Facilities $ 6,370 $ 6,070
On January 21, 2014, the Company entered into an additional $100 million Bilateral Revolving Credit Facility agreement,
which has a maturity date in October 2016 and provides for interest at floating rates, as defined in the agreement.
Debt Covenants and Default Provisions
The Company’s outstanding long-term debt has been issued under indentures which contain, among other provisions, certain
customary restrictive covenants with which the Company must comply while the underlying notes are outstanding. Such
covenants include obligations to not allow liens on principal U.S. manufacturing facilities, enter into sale and lease-back
transactions with respect to principal U.S. manufacturing facilities, or merge or consolidate with any other corporation, or sell