Dow Chemical 2014 Annual Report Download - page 133

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109
Annual Installments on Long-Term Debt
for Next Five Years
In millions
2015 $ 394
2016 $ 1,375
2017 $ 778
2018 $ 932
2019 $ 2,578
2014 Activity
On September 16, 2014, the Company issued $2 billion of senior unsecured notes in a public offering. The offering included
$900 million aggregate principal amount of 3.5 percent notes due 2024; $600 million aggregate principal amount of
4.25 percent notes due 2034; and $500 million aggregate principal amount of 4.625 percent notes due 2044.
During 2014, the Company issued $390 million aggregate principal amount of InterNotes with varying maturities in 2019, 2021
and 2024, at various interest rates averaging 2.94 percent. The Company also repaid $346 million of long-term debt related to
the purchase of an ethylene production facility (see Note 19 for additional information), redeemed $124 million of tax-exempt
bonds at maturity and repurchased $51 million of tax-exempt bonds. In addition, approximately $97 million of long-term debt
(net of $69 million of additional borrowings) was repaid by consolidated variable interest entities.
2013 Activity
On November 18, 2013, the Company concluded cash tender offers for $700 million aggregate principal amount of certain
notes issued by the Company. As a result of the tender offers, the Company redeemed $414 million of 6.0 percent notes due
2017 and $286 million of 5.7 percent notes due 2018 and recognized a $156 million loss on the early extinguishment of debt,
included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate.
During the third quarter of 2013, the Company redeemed $209 million aggregate principal amount of InterNotes of various
interest rates and maturities in 2017, 2018, 2020, 2021 and 2022. As a result of this redemption, the Company realized a
$3 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.
On June 24, 2013, the Company redeemed $1.25 billion aggregate principal amount of 5.9 percent notes due
February 15, 2015, at a price of 108.4 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result
of this redemption, the Company realized a $108 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.
On June 15, 2013, the Company redeemed $142 million aggregate principal amount of InterNotes of various interest rates and
varying maturities in 2017, 2018, 2020, 2021 and 2022. As a result of this redemption, the Company realized a $2 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.
On March 25, 2013, the Company redeemed $750 million aggregate principal amount of 7.6 percent notes due May 15, 2014,
at a price of 107.8 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this redemption,
the Company realized a $60 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 2013, the Company issued $447 million aggregate principal amount of InterNotes with varying maturities in 2018, 2020
and 2023, at various interest rates averaging 3.24 percent; and approximately $80 million of long-term debt (net of $119 million
of repayments) was entered into by consolidated variable interest entities. The Company also drew $300 million on a
Committed Term Loan Facility on April 5, 2013.
During 2013, the Company redeemed $250 million of 5.6 percent notes that matured on March 15, 2013, redeemed
$138 million of 6.85 percent notes that matured on August 15, 2013, and redeemed $82 million principal amount of InterNotes
at maturity. In the second quarter of 2013, the Company repurchased $200 million of tax-exempt bonds. The Company also
acquired third party lenders’ interest in Dow Kokam LLC’s $75 million note, which was previously classified as “Long-Term
Debt” in the consolidated balance sheets. See Note 5 for additional information on this transaction.