2nd UPDATE: Dow Chemical Raises $2 Billion In 2-Part Bond Offering

Dow Chemical Co. (DOW) sold $2 billion in new 10- and 30-year bonds Friday, according to a person familiar with the sale.

The $1.25 billion of bonds due 2021 priced at 2.15 percentage points over comparable government debt to yield 4.174%, while the $750 million of bonds due in 2041 priced at 2.20 percentage points over Treasurys to yield 5.259%, according to a person familiar with the sale.

Bank of America Merrill Lynch, Citigroup, Mizuho Securities and Morgan Stanley were lead bookrunners on the deal, and the debt was expected to be rated Baa3 by Moody's Investors Service and BBB by both Standard & Poor's and Fitch Ratings.

Proceeds will be used for general corporate purposes, including to fund pension contributions, finance capital expenditures and working capital, and to "pursue growth initiatives, whether through acquisitions, joint ventures or otherwise," the filing stated.

In the event of a change of control, for example through a merger or takeover, the borrower will be required to buy back the debt at 101 cents on the dollar. There is also a feature under which the issuer can call the debt back in three months before maturity in the case of the 10-year debt, and six months prior to maturity, in the case of the 30-year debt.

A company spokeswoman said of the offering: "As we have done in the past, we are taking advantage of the current low interest-rate environment. Any debt we issue in the near term will be primarily used to repay or refinance existing debt, in line with our company's stated priority of further strengthening our financial flexibility."

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com

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