Dow Chemical 2015 Annual Report Download - page 64

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Liquidity & Financial Flexibility
The Company’s primary source of incremental liquidity is cash provided by operating activities. The generation of cash from
operations and the Company's ability to access capital markets is expected to meet the Company’s cash requirements for
working capital, capital expenditures, debt maturities, dividend payments, share repurchases, contributions to pension plans and
other needs. In addition to cash provided by operating activities, the Company’s liquidity sources also include U.S. and
Euromarket commercial paper, committed credit facilities, U.S. retail medium-term note program ("InterNotes"), accounts
receivable securitization facilities and long-term debt and capital markets. Additional details on these sources of liquidity are as
follows:
Commercial Paper
Dow issues promissory notes under its U.S. and Euromarket commercial paper programs. At December 31, 2015, the Company
had no commercial paper outstanding. The Company maintains access to the commercial paper market at competitive rates.
Committed Credit Facilities
In the event Dow has short-term liquidity needs and is unable to issue commercial paper for any reason, Dow has the ability to
access liquidity through its committed and available credit facilities, as summarized below:
Committed and Available Credit Facilities at December 31, 2015
In millions Effective Date
Committed
Credit
Credit
Available Maturity Date Interest
Five Year Competitive Advance and Revolving
Credit Facility (1) March 2015 $ 5,000 $ 5,000 March 2020 Floating rate
Bilateral Revolving Credit Facility (2) March 2015 100 100 March 2016 Floating rate
Bilateral Revolving Credit Facility (2) August 2015 100 100 March 2020 Floating rate
Bilateral Revolving Credit Facility (2) August 2015 280 280 March 2020 Floating rate
Bilateral Revolving Credit Facility (2) August 2015 100 100 March 2020 Floating rate
Bilateral Revolving Credit Facility (2) August 2015 100 100 March 2020 Floating rate
Bilateral Revolving Credit Facility August 2015 200 200 March 2020 Floating rate
Bilateral Revolving Credit Facility August 2015 100 100 August 2016 Floating rate
Total Committed and Available Credit Facilities $ 5,980 $ 5,980
(1) The prior credit facility was terminated and replaced with a new credit facility, with substantially similar terms and conditions, on
March 24, 2015.
(2) The prior credit facility was amended or replaced in 2015 to extend its maturity date and incorporate substantially similar terms and
conditions to the new Five Year Competitive Advance and Revolving Credit Facility.
Shelf Registration - U.S.
The Company renewed an automatic shelf registration for an unspecified amount of mixed securities with the SEC on
February 19, 2013. Under this shelf registration, the Company may offer common stock, preferred stock, depositary shares,
debt securities, warrants, stock purchase contracts and stock purchase units with pricing and availability dependent on market
conditions. The shelf registration expires on February 19, 2016. The Company expects to renew this shelf registration on or
about February 16, 2016. A new prospectus supplement to register an unlimited amount of securities for issuance under the
Company’s InterNotes program under this shelf registration is expected to be filed on or about February 16, 2016.
Shelf Registration - Japan
At December 31, 2015, the Company had Japanese yen 50 billion (approximately $415 million) of securities available for
issuance under a shelf registration renewed with the Kanto Local Finance Bureau of the Ministry of Finance of Japan effective
December 13, 2014, which will expire on December 12, 2016. The Company expects to renew this shelf registration in the
fourth quarter of 2016.
Accounts Receivable Securitization Facilities
The Company has access to committed accounts receivable securitization facilities in the United States, Europe and Asia
Pacific, from which amounts available for funding are based upon available and eligible accounts receivable within each of the
facilities. The Asia Pacific facilities are renewed annually. The Europe facility was renewed in July 2015 for a term that extends
to July 2018. The Company renewed the United States facility in June 2015 for a term that extends to June 2018. See Note 16
to the Consolidated Financial Statements for further information.