Dow Moves Ahead with Rohm Deal

DOW Moving Ahead with the Rohm & Haas Deal

Dow Chemical (DOW - Analyst Report) is moving ahead with the Rohm & Haas (ROH) deal as originally planned. Dow got an amended loan agreement, and has its short-term debt rating lowered while the long-term rating is intact.

The new loan agreement adds 2 years to repayment, and has slightly looser debt covenants. The company needs to raise $1.5B in equity 90 days after the deal. Dow is in the midst of $4 billion in asset sales (45% of a Dutch refiner, Morton Salt, and various other equity stakes). Morton Salt can be sold for at least $1.5 billion, as sales have risen 47% in the past 2 years and earnings tripled due to poor weather.