Dow Announces Its Intention to Convert All Series A Convertible Preferred Stock into Common Stock
December 15 2016 - 4:16PM
Business Wire
Immediately Accretive to Cash Flow;Underscores the Strength,
Resilience and Value Creation of Dow’s Business Model
The Dow Chemical Company (NYSE: DOW) announced today its
intention to provide notice to its holders of Series A Convertible
Preferred Stock that the Company will exercise its option to
convert all of the Series A preferred stock into shares of common
stock, having met the requirements for conversion at the option of
the Company. The effective date of the conversion will be December
30, 2016 (the “Conversion Date”).
“This milestone is the latest proof point of the strength,
resilience and value creation of Dow’s business model – a narrower
and deeper focus in attractive, consumer-driven end markets,
compelling strategic growth investments, and continuous self-help
productivity actions,” said Andrew Liveris, Dow’s chairman and
chief executive officer. “It is also a clear illustration of our
owners’ recognition and support of the Company’s consistent
earnings and cash flow growth, as well as our potential to deliver
even greater shareholder value in both the near- and
long-term.”
On the Conversion Date, holders of Series A preferred stock will
be entitled to receive 24.2010 shares of common stock for each
share of preferred stock, reflecting an approximate conversion
price of $41.32 per share. The conversion of all four million
shares of Series A preferred stock, will result in an additional
96.804 million shares of outstanding Dow common stock.
The Company will pay its last dividend on the Series A preferred
stock on the Conversion Date for the quarter ending December 31,
2016.
About Dow
Dow (NYSE: DOW) combines the power of science and technology to
passionately innovate what is essential to human progress. The
Company is driving innovations that extract value from material,
polymer, chemical and biological science to help address many of
the world's most challenging problems such as the need for clean
water, clean energy generation and conservation, and increasing
agricultural productivity. Dow's integrated, market-driven,
industry-leading portfolio of specialty chemical, advanced
materials, agrosciences and plastics businesses delivers a broad
range of technology-based products and solutions to customers in
approximately 180 countries and in high-growth sectors such as
packaging, electronics, water, coatings and agriculture. In 2015,
Dow had annual sales of nearly $49 billion and employed
approximately 49,000 people worldwide. The Company's more than
6,000 product families are manufactured at 179 sites in 35
countries across the globe. On June 1, 2016, Dow became the 100
percent owner of Dow Corning Corporation’s silicones business, a
global company with sales of greater than $4.5 billion in 2015, 25
manufacturing sites in 9 countries and approximately 10,000
employees worldwide. References to "Dow" or the "Company" mean The
Dow Chemical Company and its consolidated subsidiaries unless
otherwise expressly noted. More information about Dow can be found
at www.dow.com.
®TM Trademark of The Dow Chemical Company (“Dow”) or an
affiliated company of Dow
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The Dow Chemical CompanyKyle Bandlow+1
989.638.2417kbandlow@dow.com
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