Dow Chemical 2009 Annual Report Download - page 62

Table of Contents
·Dow priced a public common stock offering of 150 million shares of common stock, with total gross proceeds of approximately $2.25 billion. Of
these shares, approximately $1 billion in gross proceeds were through shares offered by the Company and $1.25 billion were through shares offered
by accounts and funds managed by Paulson & Co. Inc. and trusts created by members of the Haas family. All of the net proceeds received by Dow
were used to repay a portion of its term loan borrowings. See Note W to the Consolidated Financial Statements for additional information.
·Dow issued $6 billion of debt securities in a public offering in May. Of the notes offered, $1.35 billion aggregate principal amount were offered by
accounts and funds managed by Paulson & Co. Inc. and trusts created by members of the Haas family. Together with the common stock offering
priced earlier in the year, Dow retired all remaining Perpetual Preferred Stock, Series B from its capital structure at par. Part of the net proceeds
received by Dow was used to repay a portion of its term loan borrowings. Dow issued an additional $2.75 billion of debt securities in a public
offering in August. Part of the net proceeds received by Dow was used to repay a portion of its term loan borrowings. See Notes O and V to the
Consolidated Financial Statements for additional information.
·Dow converted Cumulative Convertible Perpetual Preferred Stock, Series C (“preferred series C”), issued to partially finance the acquisition of Rohm
and Haas, into 31.0 million shares of the Company’s common stock in June and all shares of preferred series C were retired. See Note V to the
Consolidated Financial Statements for additional information.
·The Company repaid the outstanding balance of its revolving credit facility. See Note O to the Consolidated Financial Statements for additional
information.
·Dow completed the sale of its Calcium Chloride business for net proceeds of $204 million.
·Dow completed the sale of its ownership interest in Total Raffinaderij Nederland N.V. (“TRN”), a joint venture with Total S.A., and related inventory
for $742 million.
·Dow completed the sale of its ownership interest in the OPTIMAL Group of Companies, nonconsolidated affiliates, to Petroliam Nasional Berhad for
net proceeds of $660 million.
·Dow completed the divestiture of Morton International, Inc., the Salt business of Rohm and Haas, to K+S Aktiengesellschaft for net proceeds of
$1,576 million. Approximately $1 billion in proceeds from the transaction were used to pay the remaining outstanding balance of Dow’s term loan
borrowings.
See Note E to the Consolidated Financial Statements for additional information on divestitures.
·Dow AgroSciences LLC and Monsanto Company announced the completion of U.S. and Canadian regulatory authorizations for SmartStax™, the
agriculture industry’s most advanced, all-in-one corn trait platform.
·Dow unveiled its line of POWERHOUSE™ solar shingle, revolutionary photovoltaic solar panels in the form of solar shingles that can be integrated
into rooftops with standard asphalt shingle materials. The product was named one of “The 50 Best Inventions of 2009” by TIME Magazine.
·Dow and its joint venture partner selected Midland, Michigan as the site to construct a new facility to produce affordable advanced superior lithium
polymer battery technology for hybrid and electric vehicles. The first phase of the site is projected to cost more than $300 million and cover 400,000
square feet. The joint venture – between the Company and Townsend Kokam LLC, known as Dow Kokam – announced that it had been awarded a
$161 million federal grant from the United States Department of Energy.
·Dow and BASF SE jointly announced their support for the Patent Asset Index™, a new methodology that measures R&D effectiveness, innovation
strength and how these factors lead to sustained competitive advantage. Findings based on 2008 results rank Dow first in the critical measurement of
Competitive Impact™. These results show that Dow is among the most innovative companies in the global chemical industry.
·Dow launched a new business and innovation hub in the Asia Pacific region, the Shanghai Dow Center. The center is comprised of a state-of-the-art
R&D facility and Dow’s regional headquarters for its businesses and functions.
Looking to 2010, the Company’s plans do not assume an accelerated rebound in business conditions from year-end 2009 levels, particularly in developed
countries. In the United States, high unemployment and cautious consumer spending are expected to temper an economic rebound, with growth still expected in
the year but at a muted pace. Recovery in Western Europe and developed countries in Asia Pacific is expected to lag the United States, as government stimulus
programs may
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