As filed with the Securities and Exchange Commission on August 29, 2002
Registration No. 333-91228
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------
AMENDMENT NO. 2 TO
FORM S-3
REGISTRATION STATEMENT
Under
The Securities Act of 1933
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THE DOW CHEMICAL COMPANY
(Exact name of registrant as specified in its charter)
Delaware 38-1285128
(State or other (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or
organization)
2030 Dow Center
Midland, Michigan 48674
(989) 636-1000
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
Tina Van Dam
Corporate Secretary
The Dow Chemical Company
2030 Dow Center
Midland, Michigan 48674
(989) 636-1000
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
-----------------
Copies to:
Edward S. Best
Mayer, Brown, Rowe & Maw
190 South LaSalle Street
Chicago, Illinois 60603
(312) 782-0600
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Approximate date of commencement of proposed sale to the public: From time
to time after the effective date of this Registration Statement.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box: [_]
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box: [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [_]
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CALCULATION OF REGISTRATION FEE
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Amount of
Amount to be Registration
Title of each class of Securities to be Registered Registered(1) Fee(2)(6)
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Common Stock, $2.50 par value per share(3)...... $1,500,000,000 $138,000
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Preferred Stock, $1.00 par value per share(4)...
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Debt Securities(5)..............................
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Warrants to Purchase Common Stock...............
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Warrants to Purchase Preferred Stock............
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Warrants to Purchase Debt Securities............
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(1)If any Debt Securities are issued at an original issue discount, then the
principal amount of Debt Securities registered hereby shall be such greater
principal amount as shall result in an aggregate initial offering price not
to exceed $1,500,000,000 less the aggregate dollar amount of all securities
previously issued hereunder.
(2)Pursuant to Rule 457(o) under the Securities Act of 1933, the registration
fee is calculated on the maximum offering price of all securities listed,
and the table does not specify information by each class about the amount to
be registered.
(3)Also includes an indeterminate number of shares of common stock that may
from time to time be issued at an indeterminate price of issuance, upon
conversion or exchange of debt securities or preferred stock to the extent
any debt securities or preferred stock which are by their terms convertible
into or exchangeable for common stock or issued, or upon the exercise of
warrants to purchase common stock.
(4)Also includes an indeterminate number of shares of preferred stock that may
from time to time be issued at an indeterminate price of issuance, upon
conversion or exchange of debt securities or preferred stock to the extent
any debt securities or preferred stock which are by their terms convertible
into or exchangeable for preferred stock are issued, or upon the exercise of
warrants to purchase preferred stock.
(5)Also includes an indeterminate amount of debt securities that may from time
to time be issued at an indeterminate price of issuance, upon conversion or
exchange of debt securities or preferred stock to the extent any debt
securities or preferred stock which are by their terms convertible into or
exchangeable for debt securities are issued, or upon the exercise of
warrants to purchase debt securities.
(6)Previously paid with the initial filing of the Registration Statement on
June 26, 2002.
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The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
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SUBJECT TO COMPLETION, DATED AUGUST 29, 2002
PROSPECTUS
The Dow Chemical Company
By this prospectus, Dow may offer from time to time a total of up to
$1,500,000,000 of securities, which may include:
. common stock
. preferred stock
. warrants to purchase common stock
. warrants to purchase preferred stock
. debt securities
. warrants to purchase debt securities
Dow will provide you with the specific terms and the public offering prices
of these securities in supplements to this prospectus. You should read this
prospectus and the prospectus supplements carefully before you invest. This
prospectus may not be used to offer and sell securities unless accompanied by a
prospectus supplement.
Our common stock is listed on the New York Stock Exchange under the symbol
"Dow."
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful and complete. Any representation to the contrary is
a criminal offense.
This prospectus is dated , 2002
The information in this prospectus is not complete and may be changed. Dow may
not sell the securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an
offer to sell these securities and Dow is not soliciting an offer to buy these
securities in any State where the offer or sale is not permitted.
TABLE OF CONTENTS
Page
- ----
About this Prospectus 2
The Dow Chemical Company 2
Selected Consolidated Financial Data 3
Ratio of Earnings to Fixed Charges 5
Use of Proceeds 5
Description of Capital Stock 5
Description of Debt Securities 10
Description of Warrants to Purchase Common Stock or Preferred Stock 21
Description of Debt Warrants 22
Plan of Distribution 23
Legal Matters 24
Experts 24
Where You Can Find More Information 25
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that Dow filed with the
Securities and Exchange Commission under the shelf registration process. Dow
may sell common stock, preferred stock, debt securities, warrants to purchase
common stock, warrants to purchase preferred stock and warrants to purchase
debt securities. The total sales of all securities sold under this prospectus,
however, may not exceed $1,500,000,000. This prospectus provides you with a
general description of the securities Dow may offer. Each time Dow sells
securities, Dow will provide a prospectus supplement that will contain specific
information about the terms of that offering. The prospectus supplement may
also add, update or change information contained in this prospectus. You should
read both this prospectus and any prospectus supplement together with
additional information described under the heading "Where You Can Find More
Information."
THE DOW CHEMICAL COMPANY
Dow is a leading science and technology company that provides innovative
chemical, plastic and agricultural products and services to many essential
consumer markets. Dow serves customers in more than 170 countries and a wide
range of markets that are vital to human progress, including food,
transportation, health and medicine, personal and home care, and building and
construction, among others. Dow has 208 manufacturing sites in 38 countries and
supplies more than 3,200 products. Dow's corporate offices are located at 2030
Dow Center, Midland, Michigan 48674, and Dow's telephone number is (989)
636-1000.
Additional information concerning Dow and its subsidiaries is included in
the documents filed with the Securities and Exchange Commission and
incorporated in this prospectus by reference. See the discussion under the
heading "Where You Can Find More Information."
2
SELECTED CONSOLIDATED FINANCIAL DATA
The selected consolidated financial data for each of the years ended
December 31, 2001, 2000, 1999 and 1998 have been derived from our audited
consolidated financial statements. The selected consolidated financial data for
the year ended December 31, 1997 and the six months ended June 30, 2002 and
2001 have been derived from Dow's unaudited consolidated financial statements.
The selected consolidated financial data for the six months ended June 30, 2002
and 2001 reflect all adjustments (consisting of normal recurring accruals)
which, in the opinion of management, are considered necessary for a fair
presentation of the results for the periods covered. The consolidated financial
data have been prepared to give retroactive effect to the Union Carbide merger
and include the combined accounts of Dow and Union Carbide Corporation for all
periods presented. This data should be read in conjunction with the
consolidated financial statements and related notes incorporated by reference
in this prospectus. See "Where You Can Find More Information."
For the six
months ended
June 30, For the years ended December 31,
--------------- ----------------------------------------
2002 2001 2001 2000 1999 1998 1997
------- ------- ------- ------- ------- ------- -------
(in millions)
Income statement data:
Net sales................................................ $13,479 $14,730 $27,805 $29,534 $25,859 $25,101 $27,476
Income (loss) before cumulative effect of changes in
accounting principles................................... $ 276 $ (437) $ (417) $ 1,675 $ 1,637 $ 1,707 $ 2,471
Net income (loss) available for common stockholders...... $ 343 $ (405) $ (385) $ 1,675 $ 1,617 $ 1,707 $ 2,454
Earnings (loss) before cumulative effect of changes in
accounting principles per common share--diluted......... $ 0.30 $ (0.49) $ (0.46) $ 1.85 $ 1.84 $ 1.89 $ 2.63
Earnings (loss) per common share--diluted................ $ 0.37 $ (0.45) $ (0.43) $ 1.85 $ 1.82 $ 1.89 $ 2.61
Dividends declared per share of Dow common stock......... $ 0.67 $ 0.625 $ 1.295 $ 1.16 $ 1.16 $ 1.16 $ 1.12
Balance sheet data:
Total assets.......................................... $37,105 $36,947 $35,515 $35,991 $33,456 $31,121 $31,004
Long-term obligations and redeemable preferred stock.. $ 9,336 $ 8,379 $ 9,266 $ 6,613 $ 6,941 $ 5,890 $ 5,703
3
The following table provides pro forma results for the years ended December
31, 2001, 2000 and 1999, as if the non-amortization provisions of Statement of
Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets,"
which Dow adopted on January 1, 2002, had been applied.
For the years ended
December 31,
----------------------
In millions, except per share amounts 2001 2000 1999
------------------------------------- ------ ------ ------
Reported income (loss) before cumulative effect of changes in accounting
principles......................................................................... $ (417) $1,675 $1,637
Reported net income (loss)........................................................... $ (385) $1,675 $1,617
------ ------ ------
Adjustments:
Goodwill amortization, net of tax................................................. $ 128 $ 99 $ 123
Negative goodwill amortization, net of tax........................................ (10) (3) --
Equity method goodwill amortization, net of tax................................... 11 9 11
------ ------ ------
Total adjustments............................................................. $ 129 $ 105 $ 134
====== ====== ======
Adjusted income (loss) before cumulative effect of changes in accounting
principles......................................................................... $ (288) $1,780 $1,771
Adjusted net income (loss)........................................................... $ (256) $1,780 $1,751
------ ------ ------
Reported earnings (loss) before cumulative effect of changes in accounting principles
per common share--basic............................................................ $(0.46) $ 1.88 $ 1.87
Reported earnings (loss) per common share--basic..................................... $(0.43) $ 1.88 $ 1.85
------ ------ ------
Adjustments:
Goodwill amortization, net of tax................................................. $ 0.14 $ 0.11 $ 0.14
Negative goodwill amortization, net of tax........................................ (0.01) -- --
Equity method goodwill amortization, net of tax................................... 0.01 0.01 0.01
------ ------ ------
Total adjustments............................................................. $ 0.14 $ 0.12 $ 0.15
====== ====== ======
Adjusted earnings (loss) before cumulative effect of changes in accounting principles
per common share--basic............................................................ $(0.32) $ 2.00 $ 2.02
Adjusted earnings (loss) per common share--basic..................................... $(0.29) $ 2.00 $ 2.00
------ ------ ------
Reported earnings (loss) before cumulative effect of changes in accounting principles
per common share--diluted.......................................................... $(0.46) $ 1.85 $ 1.84
Reported earnings (loss) per common share--diluted................................... $(0.43) $ 1.85 $ 1.82
------ ------ ------
Adjustments:
Goodwill amortization, net of tax................................................. $ 0.14 $ 0.11 $ 0.14
Negative goodwill amortization, net of tax........................................ (0.01) -- --
Equity method goodwill amortization, net of tax................................... 0.01 0.01 0.01
------ ------ ------
Total adjustments............................................................. $ 0.14 $ 0.12 $ 0.15
====== ====== ======
Adjusted earnings (loss) before cumulative effect of changes in accounting principles
per common share--diluted.......................................................... $(0.32) $ 1.97 $ 1.99
Adjusted earnings (loss) per common share--diluted................................... $(0.29) $ 1.97 $ 1.97
====== ====== ======
4
RATIO OF EARNINGS TO FIXED CHARGES
For the
Six
Months
Ended
June 30, For the Years Ended December 31,
-------- -------------------------------
2002 2001 2001 2000 1999 1998 1997
---- ---- ---- ---- ---- ---- ----
Ratio of Earnings to Fixed Charges 2.1x (a) (b) 3.6x 4.3x 4.3x 6.1x
For the purposes of these ratios, earnings consist of income before (1)
income taxes, (2) minority interests, (3) extraordinary items, (4) cumulative
effect of changes in accounting principles, (5) amortization of capitalized
interest and (6) fixed charges (adjusted to exclude capitalized interest) and
after adjustment for unremitted earnings of 20%-50% owned companies. Fixed
charges consist of interest on all indebtedness, amortization of capitalized
debt costs, discount or premium and a portion of rentals deemed to represent an
interest factor. The ratios of earnings to fixed charges give retroactive
effect to the February 6, 2001 merger of Union Carbide Corporation with a
subsidiary of Dow, resulting in Union Carbide becoming a wholly owned
subsidiary of Dow.
(a) As a result of $1,408 million in pretax costs recorded for
merger-related expenses and restructuring, earnings for the six months ended
June 30, 2001 were inadequate to cover fixed charges, with a deficiency of $691
million.
(b) As a result of $1,487 million in pretax costs recorded for
merger-related expenses and restructuring, earnings for the year ended December
31, 2001 were inadequate to cover fixed charges, with a deficiency of $582
million.
USE OF PROCEEDS
We expect to use the net proceeds from sales of any securities described in
this prospectus for our general corporate purposes, which may include funding
capital expenditures, pursuing growth initiatives, whether through
acquisitions, joint ventures or otherwise, repaying or refinancing indebtedness
or other obligations, and financing working capital increases. Pending the
application of the net proceeds, we expect to invest the net proceeds in
marketable securities or reduce our short-term indebtedness.
DESCRIPTION OF CAPITAL STOCK
The following summary of common stock and preferred stock of Dow does not
purport to be complete and is subject to, and qualified in its entirety by
reference to, the relevant provisions of Delaware law, and by Dow's certificate
of incorporation and bylaws, which are incorporated by reference as exhibits to
the registration statement of which this prospectus is a part.
Dow is authorized to issue 1,750,000,000 shares of all classes of stock,
1,500,000,000 of which are shares of common stock, par value $2.50 per share,
and 250,000,000 of which are shares of preferred stock. As of June 30, 2002,
there were 910,718,107 shares of common stock issued and outstanding and no
shares of preferred stock issued or outstanding. All issued and outstanding
shares of common stock are fully paid and non-assessable. Any additional shares
of common stock and preferred stock that Dow issues will be fully paid and
non-assessable. Neither Dow's common stockholders nor preferred stockholders
have preemptive rights.
Common Stock
General
Dow's certificate of incorporation provides that, subject to all of the
rights of holders of preferred stock provided for by the board of directors or
by Delaware corporate law, the holders of common stock will have full voting
rights on all matters requiring stockholder action, with each share of common
stock being entitled to one vote and having equal rights of participation in
the dividends and assets of Dow.
5
Board of Directors
Dow's certificate of incorporation divides Dow's board of directors into
three classes of directors that are as nearly equal in number as possible with
three-year terms. As a result, approximately one-third of Dow's board of
directors is elected each year. A quorum of directors consists of a majority of
Dow's entire board of directors then holding office.
Number, Filling of Vacancies and Removal of Directors
Dow's certificate of incorporation and bylaws provide that its board of
directors may not have less than six or more than twenty-one members. The
actual number of directors is determined by a vote of a majority of Dow's
entire board of directors. Currently, Dow has thirteen members on its board of
directors. Vacancies on Dow's board of directors and any newly created
directorships are filled by a vote of the majority of the other directors then
in office. Directors elected to fill a vacancy or a new position hold office
until the next annual meeting of stockholders. Directors can be removed only
for cause and only by the vote of stockholders holding 80% of the voting power
of Dow's outstanding stock entitled to vote generally in the election of
directors, voting together as a single class.
Dividends
Delaware corporate law generally provides that a corporation, subject to
restrictions in its certificate of incorporation, including preferred
stockholders' rights to receive dividends prior to common stockholders, may
declare and pay dividends out of:
. surplus; or
. net profits for the fiscal year in which the dividend is declared and/or
the preceding fiscal year, if there is no surplus.
Dividends may not be paid out of net profits if the capital of the
corporation is less than the aggregate amount of capital represented by the
issued and outstanding stock of all classes having a preference on the
distribution of assets. Dividends on Dow common stock are not cumulative. Dow's
certificate of incorporation does not contain any additional restrictions on
the declaration or payment of dividends.
Special Meetings of Stockholders
Dow's bylaws provide that a special stockholders' meeting for any purpose
may be called only by the board of directors by a resolution adopted by a
majority of the entire board:
. upon motion of a director; or
. upon written request of stockholders holding at least 50% of the voting
power of the shares of capital stock outstanding and entitled to vote
generally in the election of directors.
Stockholder notices requesting a special meeting must be given to Dow's
Secretary. The notice must include, as to each matter the stockholder proposes
to bring before the meeting:
. the name and address of the stockholder;
. the class or series and number of shares of capital stock that are
beneficially owned by the stockholder;
. a brief description of the business to be brought before the meeting,
including the text of any proposed amendment to the certificate of
incorporation or bylaws;
. a description of all arrangements or understandings between the
stockholder and any other persons related to the business proposal;
6
. any material business interests of the stockholder in the business
proposal; and
. a representation that the stockholder intends to appear in person or by
proxy at the meeting to bring the business before the meeting.
Advance Notice Provisions for Stockholder Proposals Other than Election of
Directors
Dow's bylaws provide that a stockholder may bring business before an annual
stockholders' meeting if the stockholder is a stockholder on the record date of
giving notice and on the record date of the meeting and gives notice to Dow's
Secretary of business that is proper to be brought at the meeting under
Delaware corporate law:
. no earlier than 120 days or later than 60 days before the anniversary date
of the first mailing of proxy materials for the last annual meeting; or
. if the annual meeting is more than 30 days before or after the anniversary
date of the last annual meeting, Dow must receive the stockholder's notice
no later than the close of business on the 10th day after the earlier of
the date on which notice of the annual meeting date was mailed or publicly
disclosed.
The notice must include the same information required to be included in a
stockholder's notice in connection with requesting a special meeting. See the
section of this prospectus captioned "Special Meetings of Stockholders."
Advance Notice Provisions for Stockholder Nominations of Directors at an
Annual Meeting
Dow's bylaws provide that a stockholder may nominate a person for election
to the board of directors at an annual stockholders' meeting if the stockholder
gives notice to Dow's Secretary:
. no more than 120 days and no less than 60 days before the anniversary date
of the first mailing of proxy materials for the last annual meeting; or
. if the annual meeting is more than 30 days before or after the anniversary
date of the last annual meeting, Dow must receive the stockholder's notice
no later than the close of business on the 10th day after the earlier of
the day on which notice of the annual meeting date was mailed or publicly
disclosed.
The notice must include the following:
. a description of all arrangements or understandings between the
stockholder and the nominee and any other person pursuant to which the
nomination is made;
. the information regarding the nominee that would have been required to be
included in a proxy statement filed under the proxy rules of the
Securities and Exchange Commission if the nominee had been nominated by
the board of directors;
. the consent of the nominee to serve as a director if he or she is elected;
and
. the information required to be included in a stockholder's notice in
connection with requesting a special meeting. See the section of this
prospectus captioned "Special Meetings of Stockholders."
Advance Notice Provisions for Stockholder Nominations of Directors at a
Special Meeting
Dow's bylaws provide that a stockholder may nominate a person for election
to the board of directors at a special meeting of stockholders if the
stockholder gives Dow's secretary notice of the nomination no later than the
close of business on the seventh day after notice of the special meeting is
first given to stockholders.
In addition to the information required to be included in a stockholder's
notice in connection with a special meeting, the notice must include the same
information that would be required to nominate a person for election as a
director at an annual meeting. See the section of this prospectus captioned
"Advance Notice Provisions for Stockholder Nominations of Directors at an
Annual Meeting."
7
Stockholder Action by Written Consent
Under Delaware corporate law, unless otherwise provided in a corporation's
certificate of incorporation, any action required or permitted to be taken at
an annual or special stockholders' meeting may be taken by written consent,
without a meeting, prior notice or a vote. The written consent must be signed
by holders of outstanding stock having the minimum number of votes necessary to
authorize or take such action at a meeting at which all shares entitled to vote
on the matter were present and voted. Dow's certificate of incorporation,
however, provides that any action required or permitted to be taken by the
stockholders must be taken at a duly called annual or special stockholders'
meeting and may not be taken by written consent.
Transactions with Interested Stockholders and a Merger or Sale of Assets
Delaware corporate law requires the approval of the board of directors and a
majority of a corporation's outstanding stock entitled to vote to authorize a
merger or consolidation unless the company's certificate of incorporation
requires a greater percentage. Unless required by a corporation's certificate
of incorporation, stockholder approval, however, is not required in certain
cases, such as where either:
. no shares of common stock of the surviving corporation and no shares,
securities or obligations convertible into common stock are to be issued
or delivered in the merger; or
. the authorized and unissued shares or the treasury shares of common stock
of the surviving corporation to be issued or delivered in the merger, plus
those initially issuable upon conversion of any other shares, securities
or obligations to be issued or delivered in the merger do not exceed 20%
of the shares of common stock of the corporation outstanding immediately
prior to the effective date of the merger.
A sale of all or substantially all of a Delaware corporation's assets or a
voluntary dissolution of a Delaware corporation requires the vote of a majority
of the board of directors and a majority of the corporation's outstanding
shares entitled to vote on the matter unless the company's certificate of
incorporation requires a greater percentage. Dow's certificate of incorporation
does not require a greater percentage, except as described below.
Delaware corporate law generally defines an interested stockholder as a
person, other than the corporation and any direct or indirect majority owned
subsidiary of the corporation:
. who is the direct or indirect owner of 15% or more of the outstanding
voting stock of the corporation; or
. is an affiliate or associate of the corporation and was the direct or
indirect owner of 15% or more of the outstanding voting stock of the
corporation at any time within the three-year period immediately prior to
the date it asked for determination of its status as an interested
stockholder; and
. the affiliates and associates of that person.
Delaware corporate law prohibits an interested stockholder from engaging in
a business combination with the Delaware corporation for three years following
the time of becoming an interested stockholder. This three-year waiting period
does not apply when:
. prior to the time of becoming an interested stockholder, the board of
directors approves either the business combination or the transaction that
resulted in the stockholder becoming an interested stockholder;
. as a result of becoming an interested stockholder, the stockholder owned,
excluding shares owned by directors who are also officers and employee
stock plans in which participants do not have the right to determine
confidentially whether shares held subject to the plan will be tendered in
a tender or exchange offer, at least 85% of the outstanding voting stock
of the corporation at the time the transaction began; or
. at or after the time of becoming an interested stockholder, the business
combination is approved by the board of directors and authorized at a
meeting of stockholders by a vote of at least two-thirds of the
outstanding voting stock that is not owned by the interested stockholder.
8
These restrictions also do not apply in other circumstances, which are set
forth in Section 203 of the Delaware General Corporation Law, including
business combinations with an interested stockholder that are proposed after a
public announcement of and prior to the consummation or abandonment of:
. certain mergers or consolidations specified in Section 203 of the Delaware
General Corporation Law;
. sales of 50% or more of the aggregate market value of a corporation's
assets or outstanding voting stock; or
. tender offers or exchange offers for 50% or more of a corporation's voting
stock.
Delaware corporate law allows a corporation to specify in its certificate of
incorporation or bylaws that it will not be governed by the section relating to
transactions with interested stockholders. Dow has not made that election in
its certificate of incorporation or bylaws.
Dow's certificate of incorporation provides that, in addition to the vote
required pursuant to Delaware corporate law, the vote of stockholders owning at
least 80% of the voting power of the shares of capital stock entitled to vote
generally in the election of directors, voting together as a single class, is
required to approve any of the following business combination transactions:
. a merger or consolidation of Dow or a subsidiary of which Dow ultimately
owns 50% or more of the capital stock with:
--an interested stockholder; or
--any other individual or entity that, after the merger or consolidation,
would be an affiliate or associate of an interested stockholder;
. a sale, lease, exchange, mortgage, pledge, transfer or other disposition,
in one or more transactions with or on behalf of an interested stockholder
or an affiliate or associate of an interested stockholder, of any assets
of Dow or any subsidiary of Dow constituting 5% or more of Dow's total
consolidated assets as of the end of the most recent quarter;
. the issuance or transfer by Dow or any of its subsidiaries of any
securities of Dow or its subsidiaries in one or more transactions to, or
proposed by or on behalf of, an interested stockholder or an affiliate or
associate of an interested stockholder in exchange for cash, securities or
other property constituting not less than 5% of Dow's consolidated total
assets as of the end of the most recent quarter;
. the adoption of a plan or proposal for liquidation or dissolution of Dow
or any spin-off or split-up of any kind of Dow or any subsidiary of Dow
that is proposed by or on behalf of an interested stockholder or an
affiliate or associate of an interested stockholder; or
. any reclassification of securities or recapitalization of Dow, or any
merger or consolidation of Dow with a subsidiary of Dow or other
transaction that has the direct or indirect effect of increasing the
percentage of the outstanding shares of:
--any class of equity securities of Dow or any subsidiary of Dow; or
--any class of securities of Dow or any subsidiary convertible into equity
securities of Dow or any subsidiary that are owned directly or
indirectly by an interested stockholder and all of its affiliates and
associates.
However, the vote of only a majority of the stockholders entitled to vote
generally in the election of directors, voting together as a single class, is
required to approve a business combination transaction that:
. has been approved by a majority of continuing directors, even if they
constitute less than a quorum; or
. meets price and consideration conditions and procedures that are set forth
in Dow's certificate of incorporation.
9
A "continuing director" is:
--anymember of the board of directors who is not an interested stockholder
involved in a business combination described above or an affiliate,
associate, employee, agent or nominee of an interested stockholder or
relative of any of the foregoing persons, and was a member of the board
before the interested stockholder became an interested stockholder; or
--asuccessor of a director described above who is recommended or elected to
succeed a director described above by the vote of a majority of the
directors then on the board.
Dow's certificate of incorporation defines an interested stockholder as any
person or entity other than Dow, any subsidiary of Dow, any employee benefit
plan of Dow or a subsidiary of Dow or any trustee or fiduciary with respect to
any employee benefit plan when acting in a fiduciary capacity, that:
. is, or was at any time within the two-year period prior to the date in
question, the direct or indirect beneficial owner of 10% or more of the
voting power of the then-outstanding voting stock of Dow;
. is an affiliate of Dow and, at any time within the two-year period
immediately prior to the date in question, was the direct or indirect
beneficial owner of 10% or more of the voting power of the outstanding
voting stock of Dow; or
. is an assignee of, or has otherwise succeeded to, any shares of voting
stock of Dow of which an interested stockholder was the direct or indirect
beneficial owner, at any time within the two-year period immediately prior
to the date in question, if the assignment or succession occurred in the
course of a transaction or series of transactions not involving a public
offering under the Securities Act of 1933.
For purposes of determining whether a person is an interested stockholder,
the outstanding voting stock of Dow includes unissued shares of voting stock of
Dow beneficially owned by the interested stockholder but not other shares of
voting stock of Dow that may be issuable pursuant to an agreement, arrangement
or understanding or upon the exercise of conversion rights, warrants or
options, or otherwise, to any person who is not an interested stockholder.
Preferred Stock
Dow's board of directors is authorized, subject to Delaware corporate law
and without a vote of its stockholders, to issue shares of preferred stock from
time to time in one or more series and to determine the voting rights,
designations, preferences and relative, participating, optional or other
special rights and qualifications, limitations and restrictions of any series
of preferred stock. The prospectus supplement relating to an offering of shares
of Dow's preferred stock will describe the terms of the series of preferred
stock Dow is offering.
DESCRIPTION OF DEBT SECURITIES
The following description of the debt securities summarizes the material
terms and provisions of the debt securities to which a prospectus supplement
may relate. Each time Dow offers debt securities, the prospectus supplement
related to that offering will describe the terms of the debt securities Dow is
offering.
The debt securities will be issued under an indenture, dated as of April 1,
1992, as supplemented by a supplemental indenture, dated as of January 1, 1994,
a second supplemental indenture dated as of October 1, 1999, and a third
supplemental indenture dated as of May 15, 2001, between Dow and Bank One Trust
Company, N.A. (successor in interest to The First National Bank of Chicago), as
trustee. The indenture as supplemented by the supplemental indentures is
referred to in this section as the "indenture." The following summary of the
debt securities and the indenture does not purport to be complete and is
subject to the provisions of the indenture,
10
including the defined terms. Whenever Dow refers to particular sections,
articles or defined terms of the indenture, those sections, articles or defined
terms are incorporated by reference in this prospectus and prospectus
supplement. You should review the indenture that is filed as exhibits to the
registration statement for additional information.
General
Dow may issue debt securities from time to time in one or more series
without limitation as to aggregate principal amount. The indenture does not
limit the amount of other indebtedness or securities which Dow may issue.
The debt securities will be unsecured obligations and will rank equally with
all of Dow's other unsecured and unsubordinated indebtedness.
The prospectus supplement will describe the following terms of the debt
securities Dow is offering:
. the title of the debt securities or the series in which the debt
securities will be included;
. any limit on the aggregate principal amount of the debt securities of that
series;
. whether the debt securities may be issued as registered securities or
bearer securities or both, whether any of the debt securities may be
issued initially in temporary global form and whether any of the debt
securities may be issued in permanent global form;
. the price or prices at which the debt securities will be issued;
. the date or dates on which the principal amount of the debt securities is
payable;
. the interest rate or rates, or the formula by which the interest rate or
rates will be determined, if any, and the date from which any interest
will accrue;
. the interest payment dates on which any interest will be payable, the
regular record date for any interest payable on any debt securities that
are registered securities on any interest payment date, and the extent to
which, or the manner in which, any interest payable on a global security
on an interest payment date will be paid if different from the manner
described below under the section of this prospectus captioned "Global
Securities";
. any mandatory or optional sinking fund or analogous provisions;
. each office or agency where the principal of and any premium and interest
on the debt securities will be payable and each office or agency where the
debt securities may be presented for registration of transfer or exchange;
. the date, if any, after which and the price or prices at which the debt
securities may, pursuant to any optional or mandatory redemption
provisions, be redeemed, in whole or in part, and the other detailed terms
and provisions of any optional or mandatory redemption provisions;
. the denominations in which Dow may issue any debt securities which are
registered securities, if other than denominations of $1,000 and any
integral multiple thereof, and the denominations in which Dow may issue
any debt securities which are bearer securities, if other than
denominations of $5,000;
. the currency or currencies of payment of principal of and any premium and
interest on the debt securities;
. any index used to determine the amount of payments of principal of and any
premium and interest on the debt securities;
. any additional covenants applicable to the debt securities; and
. any other terms and provisions of the debt securities not inconsistent
with the terms and provisions of the indenture.
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The prospectus supplement also will describe any special provisions for the
payment of additional amounts with respect to the debt securities.
If the purchase price of any of the debt securities is denominated in one or
more foreign currencies or currency units or if the principal of, or any
premium and interest on, any series of debt securities is payable in one or
more foreign currencies or currency units, the restrictions, elections, general
tax considerations, specific terms and other information with respect to such
debt securities and such foreign currency or currency units will be set forth
in the related prospectus supplement.
Some of the debt securities may be issued as original issue discount
securities (bearing no interest or bearing interest at a rate which at the time
of issuance is below market rates) to be sold at a substantial discount below
their principal amount. The prospectus supplement will describe the federal
income tax considerations and other special considerations which apply to any
original issue discount securities.
Denominations, Registration and Transfer
The debt securities may be issued as registered securities, bearer
securities or both. Debt securities may be issued in the form of one or more
global securities, as described below under the section of this prospectus
captioned "Global Securities." Unless otherwise provided in the prospectus
supplement, registered securities denominated in U.S. dollars will be issued
only in denominations of $1,000 or any integral multiple thereof and bearer
securities denominated in U.S. dollars will be issued only in denominations of
$5,000 with coupons attached. A global security will be issued in a
denomination equal to the aggregate principal amount of outstanding debt
securities represented by that global security. The prospectus supplement
relating to debt securities denominated in a foreign or composite currency will
specify the denominations in which the debt securities will be issued.
During the "restricted period" as defined in Treasury Regulation Section
1.163-5(c)(2)(i)(D)(7), no bearer security will be mailed or otherwise
delivered to any location in the United States and a bearer security may be
delivered during the restricted period only if the person entitled to receive
the bearer security furnishes proper written certification that the bearer
security is owned by:
. a person that is not a U.S. person;
. a qualifying foreign branch of a U.S. financial institution;
. a U.S. person who acquired the obligation through the qualifying foreign
branch of a U.S. financial institution and holds the obligation through
that qualifying foreign branch of a U.S. financial institution on the date
of certification; or
. a financial institution for resale during the restricted period but not
for resale directly or indirectly to a U.S. person or to a person within
the United States or its possessions.
Registered securities of any series may be exchanged for other registered
securities of the same series and of a like aggregate principal amount and
tenor of different authorized denominations. In addition, if debt securities of
any series may be issued as both registered securities and as bearer
securities, at the option of the holder upon written request, and subject to
the terms of the indenture, bearer securities (with all unmatured coupons,
except as provided below, and all matured coupons in default attached) of any
series may be exchanged for registered securities of the same series of any
authorized denominations and of a like aggregate principal amount and tenor.
Unless otherwise indicated in the prospectus supplement, any bearer security
surrendered in exchange for a registered security between a record date and the
relevant date for payment of interest will be surrendered without the coupon
relating to the date for payment of interest attached, and interest may be paid
only to the holder of the coupon when due in accordance with the terms of the
indenture. Except as indicated in the prospectus supplement, bearer securities
will not be issued in exchange for registered securities.
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Debt securities may be presented for exchange as described in the previous
paragraph, and registered securities, other than a global security, may be
presented for registration of transfer, with the form of transfer duly
executed, at the office of the security registrar designated by Dow or at the
office of any transfer agent designated by Dow for that purpose, without
service charge and upon payment of any taxes and other governmental charges as
described in the indenture. The transfer or exchange will be effected when the
security registrar or the transfer agent is satisfied with the documents of
title and identity of the person making the request. Dow has initially
appointed the trustee as the security registrar under the indenture. If a
prospectus supplement refers to any transfer agent initially designated by Dow
with respect to any series of debt securities, Dow may at any time cancel the
designation of the transfer agent or approve a change in the location through
which the transfer agent acts, except that:
. if debt securities of a series may be issued only as registered
securities, Dow will be required to maintain a transfer agent in each
place of payment for the series; and
. if debt securities of a series are issuable as bearer securities, Dow will
be required to maintain (in addition to the security registrar) a transfer
agent in a place of payment for the series located outside the United
States.
Dow may at any time designate additional transfer agents with respect to any
series of debt securities.
In the event of any redemption in part, Dow will not be required to:
. issue, register the transfer of or exchange debt securities of any series
during a period beginning at the opening of business 15 days before the
date of the mailing of a notice of redemption of debt securities of that
series selected to be redeemed and ending at the close of business on:
--if debt securities of the series may be issued only as registered
securities, the day of mailing of the relevant notice of redemption; and
--if debt securities of the series may be issued as bearer securities, the
day of the first publication of the notice of redemption or, if debt
securities of the series also may be issued as registered securities and
there is no publication, the mailing of the relevant notice of
redemption;
. register the transfer of or exchange any registered security or portion of
any registered security called for redemption, except the unredeemed
portion of any registered security being redeemed in part; or
. exchange any bearer security called for redemption, except to exchange the
bearer security for a registered security of that series and like tenor
which is immediately surrendered for redemption.
Payments and Paying Agents
Unless otherwise indicated in the prospectus supplement, Dow will pay the
principal of and any premium and interest on registered securities other than a
global security at the office of one or more paying agents designated by Dow.
At Dow's option, however, Dow may pay any interest by check mailed to the
address of the payee entitled to the interest at the address which appears in
the security register. Unless otherwise indicated in the prospectus supplement,
payment of any installment of interest on registered securities will be made to
the person in whose name the registered security is registered at the close of
business on the record date for the applicable interest payment.
Unless otherwise indicated in the prospectus supplement, Dow may pay the
principal of and any premium and interest on bearer securities, subject to
applicable laws and regulations, at the offices of one or more paying agents
outside the United States designated by Dow. At Dow's option, however, Dow may
pay any interest by check or by wire transfer to an account maintained by the
payee outside the United States. Unless otherwise indicated in the prospectus
supplement, payment of interest on bearer securities on any interest payment
date will be made only upon surrender of the coupon relating to that interest
payment date. No payment with respect to any bearer security will be made at
any office or agency of Dow in the United States by check mailed to any
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address in the United States or by transfer to an account maintained in the
United States. Payments will not be made in respect of bearer securities or
coupons related to those bearer securities upon presentation to or any other
demand for payment from Dow or its paying agents within the United States. Dow
will pay the principal of and any premium and interest on bearer securities
denominated and payable in U.S. dollars, however, at the office of Dow's paying
agent in the United States if, and only if:
. payment of the full amount in U.S. dollars at all offices or agencies
outside the United States is illegal or effectively precluded by exchange
controls or other similar restrictions; and
. Dow has delivered to the trustee an opinion of counsel to that effect.
Unless otherwise indicated in the prospectus supplement, the principal
office of the trustee in New York City will be Dow's sole paying agent for
payments with respect to debt securities which may be issued only as registered
securities. Any paying agent outside the United States and any other paying
agent in the United States initially designated by Dow for the debt securities
will be named in the prospectus supplement. Dow may at any time designate
additional paying agents, or cancel the designation of any paying agent or
approve a change in the office through which any paying agent acts, except that:
. if debt securities of a series may be issued only as registered
securities, Dow will be required to maintain a paying agent in each place
of payment for the series; and
. if debt securities of a series may be issued as bearer securities, Dow
will be required to maintain:
--a paying agent in each place of payment for the series in the United
States for payments with respect to any registered securities of the
series and for payments with respect to bearer securities of the series
in the circumstances described above;
--a paying agent in each place of payment located outside the United
States where debt securities of the series and any coupons related to
the debt securities may be presented and surrendered for payment,
provided that if the debt securities of the series are listed on The
International Stock Exchange, London or the Luxembourg Stock Exchange or
any other stock exchange located outside the United States and the stock
exchange so requires, Dow will maintain a paying agent in London or
Luxembourg City or any other required city located outside the United
States for debt securities of the series; and
--a paying agent in each place of payment located outside the United
States where, subject to applicable laws and regulations, registered
securities of the series may be surrendered for registration of transfer
or exchange and where notices and demands to or upon Dow may be served.
All amounts paid by Dow to a paying agent for the payment of principal of
and any premium and interest on any debt security that remain unclaimed at the
end of two years after the principal, premium or interest has become due and
payable will be repaid to Dow and after the repayment the holder of the debt
security or any coupon related to the debt security may look only to Dow for
the payment of principal of and any premium and interest on the debt security.
Global Securities
The debt securities of a series may be issued in whole or in part in the
form of one or more global securities that will be deposited with, or on behalf
of, a depositary identified in the prospectus supplement. Global securities may
be issued in either registered or bearer form and in either temporary or
permanent form. Unless and until it is exchanged for debt securities in
definitive form, a temporary global security in registered form may not be
transferred except as a whole by:
. the depositary for the global security to a nominee of the depositary;
. a nominee of the depositary for the global security to the depositary or
another nominee of the depositary; or
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. the depository for the global security or the nominee to a successor of
the depositary or a nominee of the successor.
Unless otherwise indicated in the prospectus supplement, registered debt
securities issued in global form will be represented by one or more global
securities deposited with, or on behalf of, The Depository Trust Company, New
York, New York, which we refer to as DTC, or other depositary Dow appoints and
registered in the name of the depositary or its nominee. The debt securities
will not be issued in definitive form unless otherwise provided in the
prospectus supplement.
DTC will act as securities depository for the securities. The debt
securities will be issued as fully-registered securities registered in the name
of Cede & Co. (DTC's partnership nominee). One fully-registered global security
will be issued with respect to each $400 million of principal amount and an
additional certificate will be issued with respect to any remaining principal
amount of debt securities.
DTC is a limited-purpose trust company organized under the New York Banking
Law, a "banking organization" within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Securities Exchange
Act of 1934. DTC holds securities that its participants deposit with DTC. DTC
also facilitates the settlement among participants of securities transactions,
such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in participants' accounts, thereby eliminating
the need for physical movement of securities certificates. Direct participants
include securities brokers and dealers, banks, trust companies, clearing
corporations, and other similar organizations. DTC is owned by a number of its
direct participants and by the New York Stock Exchange, Inc., the American
Stock Exchange, Inc., and the National Association of Securities Dealers, Inc.
Access to the DTC system is also available to indirect participants such as
securities brokers and dealers, banks, and trust companies that clear through
or maintain a custodial relationship with a direct participant, either directly
or indirectly. The rules applicable to DTC and its participants are on file
with the SEC.
Purchases of debt securities under the DTC system must be made by or through
direct participants, which will receive a credit for the debt securities on
DTC's records. The ownership interest of each actual purchaser of each debt
security is in turn to be recorded on the direct and indirect participants'
records. These beneficial owners will not receive written confirmation from DTC
of their purchase, but beneficial owners are expected to receive a written
confirmation providing details of the transaction, as well as periodic
statements of their holdings, from the direct or indirect participants through
which the beneficial owner entered into the transaction. Transfers of ownership
interests in the debt securities are to be accomplished by entries made on the
books of participants acting on behalf of beneficial owners. Beneficial owners
will not receive certificates representing their ownership interests in debt
securities, except in the event that use of the book-entry system for the debt
securities is discontinued.
To facilitate subsequent transfers, all debt securities deposited by
participants with DTC are registered in the name of DTC's partnership nominee,
Cede & Co. The deposit of debt securities with DTC and their registration in
the name of Cede & Co. will effect no change in beneficial ownership. DTC has
no knowledge of the actual beneficial owners of the debt securities; DTC's
records reflect only the identity of the direct participants to whose accounts
the debt securities are credited, which may or may not be the beneficial
owners. The participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Delivery of notices and other communications by DTC to direct participants,
by direct participants to indirect participants, and by direct participants and
indirect participants to beneficial owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in
effect from time to time.
Redemption notices will be sent to DTC. If less than all of the debt
securities within an issue are being redeemed, DTC's practice is to determine
by lot the amount of the interest of each direct participant in the issue to be
redeemed.
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Neither DTC nor Cede & Co will consent or vote with respect to debt
securities. Under its usual procedures, DTC mails an omnibus proxy to Dow as
soon as possible after the record date. The omnibus proxy assigns Cede & Co.'s
consenting or voting rights to those direct participants to whose accounts the
debt securities are credited on the record date (identified in a listing
attached to the omnibus proxy).
Principal and interest payments, if any, on the debt securities will be made
to Cede & Co., as nominee of DTC. DTC's practice is to credit direct
participants' accounts, upon DTC's receipt of funds and corresponding detail
information from Dow or the trustee, on the applicable payable date in
accordance with their respective holdings shown on DTC's records. Payments by
participants to beneficial owners will be governed by standing instructions and
customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in "street name," and will be the
responsibility of that participant and not of DTC, the trustee or Dow, subject
to any statutory or regulatory requirements as may be in effect from time to
time. Payment of principal and interest to Cede & Co. is Dow's responsibility
or the trustee's, disbursement of payments to direct participants shall be the
responsibility of DTC, and disbursement of payments to beneficial owners is the
responsibility of direct and indirect participants.
A beneficial owner must give notice to elect to have its debt securities
purchased or tendered, through its participant, to a tender agent, and shall
effect delivery of debt securities by causing the direct participants to
transfer the participant's interest in the debt securities, on DTC's records,
to a tender agent. The requirement for physical delivery of debt securities in
connection with an optional tender or a mandatory purchase will be deemed
satisfied when the ownership rights in the debt securities are transferred by
direct participants on DTC's records and followed by a book-entry credit of
tendered debt securities to the tender agent's account.
DTC may discontinue providing its services as securities depository with
respect to the debt securities at any time by giving reasonable notice to Dow
or the trustee. Under these circumstances, in the event Dow does not appoint a
successor securities depository, debt security certificates will be printed and
delivered.
Dow may decide to discontinue use of the system of book-entry transfers
through DTC (or a successor securities depository). In that event, debt
security certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system
has been obtained from sources that Dow believes to be reliable, but Dow takes
no responsibility for their accuracy.
Limitations on Issuance of Bearer Securities
Bearer securities may not be offered, sold, resold or delivered during the
"restricted period" as defined in Treasury Regulation Section
1.163-5(c)(2)(i)(D)(7) in the United States or its possessions or to U.S.
persons other than to a qualifying foreign branch of a U.S. financial
institution. Any underwriters participating in the offering of bearer debt
securities must agree that they will not:
. offer any bearer securities for sale or resale in the United States or its
possessions or to United States persons, other than a qualifying foreign
branch of a U.S. financial institution; nor
. deliver bearer securities within the United States.
Bearer securities and any coupons related to bearer securities will bear a
legend substantially to the following effect: "Any United States person who
holds this obligation will be subject to limitations under the United States
income tax laws, including the limitations provided in Section 165(j) and
1287(a) of the Internal Revenue Code". Under Sections 165(j) and 1287(a) of the
Internal Revenue Code, holders that are U.S. persons, with certain exceptions
set forth in the Internal Revenue Code, will not be entitled to deduct any loss
on bearer securities and must treat as ordinary income any gain realized on the
sale or other disposition (including the receipt of principal) of bearer
securities.
The term "qualifying foreign branch of a United States financial
institution" means a branch located outside the United States of a U.S.
securities clearing organization, bank or other financial institution that holds
16
customers' securities in the ordinary course of its trade or business and that
provides a certificate within a reasonable time, or a blanket certificate in
the year the debt security is issued or either of the preceding two calendar
years, stating that it agrees to comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the Internal Revenue Code and its regulations.
The term "U.S. person" means a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in or under the
laws of the United States or of any political subdivision of the United States,
and an estate or trust the income of which is subject to U.S. federal income
taxation regardless of its source.
The term "United States" means the United States of America, including the
states and the District of Columbia.
The term "possessions" includes Puerto Rico, the U.S. Virgin Islands, Guam,
American Samoa, Wake Island and the Northern Mariana Islands.
Certain Covenants of Dow
Limitations on Liens
Subject to the exceptions described below and those set forth under
"Exempted Indebtedness", Dow may not, and may not permit any restricted
subsidiary to, create or permit to exist any lien on any principal property,
additions to principal property or shares of capital stock of any restricted
subsidiary without equally and ratably securing the debt securities. This
restriction will not apply to permitted liens, including:
. liens on principal property existing at the time of its acquisition or to
secure the payment of all or part of the purchase price;
. liens existing on the date of the indenture;
. liens on property or shares of capital stock, or arising out of any
indebtedness of any corporation existing at the time the corporation
becomes or is merged into Dow or a restricted subsidiary;
. liens which secure debt owing to Dow or a subsidiary by a restricted
subsidiary;
. liens in connection with the issuance of tax-exempt industrial development
or pollution control bonds or other similar bonds issued pursuant to
Section 103(b) of the Internal Revenue Code to finance all or any part of
the purchase price of or the cost of construction, equipping or improving
property, provided that those liens are limited to the property acquired
or constructed or the improvement and to substantially unimproved real
property on which the construction or improvement is located; provided
further, that Dow and its restricted subsidiaries may further secure all
or any part of such purchase price or the cost of construction of any
improvements and personal property by an interest on additional property
of Dow and restricted subsidiaries only to the extent necessary for the
construction, maintenance and operation of, and access to, the property so
acquired or constructed or the improvement;
. liens arising from assignments of money due under contracts with the
United States or any State, or any department, agency or political
subdivision of the United States or any State;
. liens in favor of any customer arising in respect of payments made by or
on behalf of a customer for goods produced for or services rendered to
customers in the ordinary course of business not exceeding the amount of
those payments;
. any extension, renewal or replacement of any lien referred to in any of
the previous clauses; and
. statutory liens, liens for taxes or assessments or governmental charges or
levies not yet due or delinquent or which can be paid without penalty or
are being contested in good faith, landlord's liens on leased property,
easements and liens of a similar nature as those described above.
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Limitation on Sale and Lease-Back Transactions
Subject to the exceptions set forth below under the section of this
prospectus captioned "Exempted Indebtedness", sale and lease-back transactions
by Dow or any restricted subsidiary of any principal property are prohibited
(except for temporary leases for a term, including any renewal thereof, of not
more than three years and except for leases between Dow and a subsidiary or
between subsidiaries) unless the net proceeds of the sale and leaseback
transaction are at least equal to the fair value of the property.
Exempted Indebtedness
Dow or any restricted subsidiary may create or assume liens or enter into
sale and lease-back transactions not otherwise permitted under the limitations
on liens and sale and lease-back transactions described above, so long as at
that time and after giving effect to the lien or sale and lease-back
transaction, the sum of:
(1) the aggregate outstanding indebtedness of Dow and its consolidated
subsidiaries incurred after the date of the indenture and secured by the
liens relating to principal property; plus
(2) the aggregate discounted value of the obligations for rental payments
in respect to the sale and lease-back transactions relating to principal
property
does not exceed 10% of consolidated net tangible assets.
There are no covenants or provisions contained in the indenture which
protect holders of debt securities in the event of a highly leveraged
transaction.
Certain Definitions
The following are the meanings of terms that are important in understanding
the covenants previously described:
. "consolidated net tangible assets" means the total assets of Dow and its
consolidated subsidiaries as shown on or reflected in its balance sheet,
less:
--all current liabilities, excluding current liabilities which could be
classified as long-term debt under generally accepted accounting
principles and current liabilities which are by their terms extendible
or renewable at the obligor's option to a time more than 12 months after
the time as of which the amount of current liabilities is being computed;
--advances to entities accounted for on the equity method of accounting;
and
--intangible assets.
. "intangible assets" means the aggregate value, net of any applicable
reserves, as shown on or reflected in Dow's balance sheet, of:
--all trade names, trademarks, licenses, patents, copyrights and goodwill;
--organizational and development costs;
--deferred charges, other than prepaid items such as insurance, taxes,
interest, commissions, rents and similar items and tangible assets being
amortized; and
--amortized debt discount and expense, less unamortized premium.
. "principal property" means any manufacturing facility having a gross book
value in excess of 1% of consolidated net tangible assets that is owned by
Dow or any restricted subsidiary and located within the United States,
excluding its territories and possessions and Puerto Rico, other than any
facility or portion of a facility which Dow's board of directors
reasonably determines is not material to the business conducted by Dow and
its subsidiaries as a whole.
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. "restricted subsidiary" means any subsidiary:
--of which substantially all of the property of is located, and
substantially all of the business is carried on, within the United
States, excluding its territories and possessions and Puerto Rico; and
--which owns or operates one or more principal properties; provided,
however, restricted subsidiary shall not include a subsidiary which is
primarily engaged in the business of a finance or insurance company, and
branches of that finance or insurance company.
. "subsidiary" means each corporation of which more than 50% of the
outstanding voting stock is owned, directly or indirectly, by Dow or one
or more of its subsidiaries, or by Dow and one or more of its subsidiaries.
Consolidation, Merger and Sale of Assets
Dow may not merge or consolidate or sell or convey all or substantially all
of its assets unless:
. the successor corporation is Dow or is a domestic corporation which
assumes Dow's obligations on the debt securities and under the indenture;
and
. after giving effect to the transaction, Dow or the successor corporation
would not be in default under the indenture.
Events of Default
With respect to any series of debt securities, any one of the following
events will constitute an event of default under the indenture:
(1) default by Dow for 30 days in the payment of any installment of
interest on the debt securities of that series;
(2) default by Dow in the payment of any principal on the debt securities
of that series;
(3) default by Dow in the payment of any sinking fund installment;
(4) default by Dow in the performance, or breach by Dow, of any of the
covenants or warranties contained in the indenture for the benefit of the
debt securities of that series which is not remedied within a period of 90
days after receipt of written notice by Dow from the trustee or the holders
of not less than 25% in principal amount of the debt securities of that
series then outstanding;
(5) we commence bankruptcy or insolvency proceedings or consent to any
bankruptcy relief sought against us;
(6) we become involved in involuntary bankruptcy or insolvency
proceedings and an order for relief is entered against us, if that order
remains in effect for more than 60 consecutive days; or
(7) any other event of default established in accordance with the
supplemental indenture or board resolution with respect to any series of
debt securities.
No event of default described in clauses (1), (2), (3), (4) or (6) above
with respect to a particular series of debt securities necessarily constitutes
an event of default with respect to any other series of debt securities.
The indenture provides that if an event of default under clauses (1), (2),
(3), (4) or (6) above (but only if the event of default under clause (4) or (6)
is with respect to less than all series of debt securities then outstanding)
shall have occurred and be continuing, either the trustee or the holders of not
less than 25% in aggregate principal amount of the then outstanding debt
securities of the series affected by the event of default, each affected series
treated as a separate class, may declare the principal of all the debt
securities of each affected series, together
19
with accrued interest, to be due and payable immediately. If an Event of
Default under clause (4), (5) or (6) above (but only if the event of default
under clause (4) or (6) is with respect to all of the series of debt securities
then outstanding) shall have occurred and be continuing, either the trustee or
the holders of not less than 25% in the aggregate principal amount of all the
debt securities then outstanding, treated as one class, may declare the
principal of all the debt securities, together with accrued interest, to be due
and payable immediately. If prior to any judgment or decree for the payment of
money due being entered or obtained, Dow delivers to the trustee an amount of
money sufficient to pay all interest then due and the principal of any
securities that have matured (other than through acceleration) and the
trustee's expenses and Dow has cured any defaults under the Indenture, then
such declaration (including a declaration caused by a default in the payment of
principal or interest, the payment for which has subsequently been provided)
may be annulled by the holders of a majority in principal amount of the debt
securities of the series then outstanding, each such series treated as a
separate class, or all debt securities treated as one class, as the case may
be, as were entitled to declare such default. In addition, past defaults may be
waived by the holders of a majority in principal amount of the debt securities
of the series then outstanding, each series treated as a separate class, or all
debt securities treated as one class, as the case may be, as were entitled to
declare such default, except a default in the payment of the principal of or
interest on the debt securities or in respect of a covenant or provision of the
indenture which cannot be modified or amended without the approval of the
holder of each debt security so affected.
The indenture contains a provision entitling the trustee, subject to the
duty of the trustee during default to act with the required standard of care,
to be indemnified by the holders of debt securities before exercising any right
or power under the indenture at the request of the holders of the debt
securities. The indenture also provides that the holders of a majority in
principal amount of the outstanding debt securities of all series affected,
each series treated as a separate class, may direct the time, method and place
of conducting any proceeding for any remedy available to the trustee, or
exercising any trust or power conferred on the trustee, with respect to the
debt securities of such series.
The indenture requires Dow to file annually with the trustee a certificate
as to the absence of any default or specifying any default that exists.
Satisfaction and Discharge of Indenture
The indenture with respect to any series, except for the surviving
obligations, including Dow's obligation to compensate the trustee and to pay
the principal of and interest on the debt securities of that series, will be
discharged and canceled upon the satisfaction of specified conditions,
including:
. payment of all the debt securities of that series; or
. the deposit with the trustee of cash or U.S. government obligations or a
combination of cash or U.S. government obligations sufficient for the
payment or redemption in accordance with the indenture and the terms of
the debt securities of that series.
Modification and Waiver
Dow and the trustee may modify and amend the indenture with the consent of
the holders of more than 50% of the principal amount of the outstanding debt
securities of each series which is affected. No supplemental indenture may,
without the consent of the holders of all outstanding debt securities:
. extend the final maturity of, reduce the rate or extend the time of
payment of interest on, reduce the principal amount of, or reduce any
amount payable on any redemption of, any debt securities without the
consent of the holder of each debt security affected; or
. reduce the percentage in principal amount of outstanding debt securities
of any series, the consent of whose holders is required for any
supplemental indenture.
20
Governing Law
The indenture and the debt securities are governed by and construed in
accordance with the laws of the State of New York.
Information About the Trustee
Dow maintains banking relationships in the ordinary course of business with
the trustee. The trustee's principal corporate trust office is located at 1
Bank One Plaza, Chicago, Illinois 60670-0126. The trustee's principal office in
New York City is located at 153 West 51st Street, New York, New York 10019.
DESCRIPTION OF WARRANTS TO PURCHASE
COMMON STOCK OR PREFERRED STOCK
Dow may issue, alone or together with common stock or preferred stock, stock
warrants for the purchase of common stock or preferred stock. The stock
warrants will be issued under a stock warrant agreement to be entered into
between Dow and a bank or trust company, as stock warrant agent, at the time of
issue. A copy of the form of the stock warrant agreement and the stock warrant
certificate for both common stock and preferred stock is filed as an exhibit to
the registration statement of which this prospectus is a part. The following
summary of the material provisions of the stock warrant agreement and the stock
warrant certificate does not purport to be complete and is subject to, and
qualified in its entirety by reference to, all the provisions of the stock
warrant agreement and the stock warrant certificate, including the defined
terms.
General
A prospectus supplement will describe the terms of the stock warrants
offered, the stock warrant agreement relating to the stock warrants and the
stock warrant certificates representing the stock warrants, including the
following:
. the offering price, if any;
. the designation and terms of the common stock or preferred stock that may
be purchased upon exercise of the stock warrants;
. if applicable, the date on and after which the stock warrants and the
related securities will be separately transferable;
. the number of shares of common stock or preferred stock that may be
purchased upon exercise of one stock warrant and the initial price at
which the shares may be purchased upon exercise;
. the date on which the right to exercise the stock warrants will begin and
the date on which the right will expire;
. a discussion of material U.S. federal income tax considerations;
. the call provisions, if any;
. the currency, currencies or currency units in which the offering price, if
any, and exercise price are payable;
. the antidilution provisions of the stock warrants; and
. any other terms of the stock warrants.
The shares of common stock or preferred stock to be issued upon exercise of
the stock warrants will, when issued in accordance with the stock warrant
agreement, be fully paid and nonassessable.
21
Exercise of Stock Warrants
Stock warrants may be exercised by surrendering to the stock warrant agent
the stock warrant certificate with the form of election to purchase on the
reverse side of the certificate duly completed and signed by the warrant
holder, or its duly authorized agent, with the signature guaranteed by a bank
or trust company, by a broker or dealer which is a member of the National
Association of Securities Dealers, Inc. or by a member of a national securities
exchange. The form of election should indicate the warrant holder's election to
exercise all or a portion of the stock warrants evidenced by the certificate.
Surrendered stock warrant certificates must be accompanied by payment of the
aggregate exercise price of the stock warrants to be exercised, as set forth in
the prospectus supplement. The payment should be made in U.S. dollars, unless
otherwise provided in the prospectus supplement. Upon the stock warrant agent's
receipt of the surrendered stock warrant certificates and payment of the
aggregate exercise price of the stock warrants, the stock warrant agent will
request that the transfer agent issue and deliver to or upon the written order
of the exercising warrant holder, a certificate stating the number of shares of
common stock or preferred stock purchased. If less than all of the stock
warrants evidenced by any stock warrant certificate are exercised, the stock
warrant agent will deliver to the exercising warrant holder a new stock warrant
certificate representing the unexercised stock warrants.
No Rights as Stockholders
Holders of stock warrants, by virtue of being holders, will not be entitled
to vote, consent, receive dividends, receive notice as shareholder with respect
to any meeting of stockholders for election of directors of Dow or any other
matter, or exercise any rights whatsoever as stockholders of Dow.
DESCRIPTION OF DEBT WARRANTS
Dow may issue, alone or together with debt securities, debt warrants for the
purchase of debt securities. The debt warrants will be issued under debt
warrant agreements to be entered into between Dow and a bank or trust company,
as debt warrant agent, at the time of issue. A copy of the form of the debt
warrant agreement and debt warrant certificate is incorporated by reference as
an exhibit to the registration statement of which this prospectus forms a part.
The following summary of certain provisions of the debt warrant agreement and
the debt warrant certificates does not purport to be complete and is subject
to, and qualified in its entirety by reference to, all the provisions of the
debt warrant agreement and the debt warrant certificates, including the defined
terms.
General
A prospectus supplement will describe the terms of the debt warrants
offered, the debt warrant agreement relating to the debt warrants and the debt
warrant certificates representing the debt warrants, including the following:
. the designation, aggregate principal amount and terms of the debt
securities purchasable upon exercise of the debt warrants and the
procedures and conditions relating to the exercise of the debt warrants;
. the designation and terms of any related debt securities with which the
debt warrants are issued and the number of debt warrants issued with each
debt security;
. the date, if any, on and after which the debt warrants and the related
debt securities may be separately transferred;
. the principal amount of debt securities purchasable upon exercise of debt
warrants and the price at which the principal amount of debt securities
may be purchased upon exercise;
. the date on which the right to exercise the debt warrants shall commence
and the date on which the right shall expire;
22
. if the debt securities purchasable upon exercise of the debt warrants are
original issue discount debt securities, a discussion of the material
Federal income tax considerations applicable to the debt securities; and
. whether the debt warrants represented by the debt warrant certificates
will be issued in registered or bearer form, and, if registered, where
they may be transferred and registered.
Debt warrant certificates may be exchanged for new debt warrant certificates
of different denominations and debt warrants may be exercised at the corporate
trust office of the debt warrant agent or any other office indicated in the
prospectus supplement.
No Rights as Holders of Debt Securities
Prior to the exercise of their debt warrants, holders of debt warrants will
not have any of the rights of holders of the debt securities purchasable upon
the exercise of debt warrants (except to the extent that consent of holders of
debt warrants may be required for modifications of the terms of the indenture
pursuant to the terms of the applicable warrant agreement and a series of debt
securities issuable upon exercise of the debt warrants). In addition, holders
of debt warrants will not be entitled to payments of principal of (and premium,
if any) or interest, if any, on the debt securities purchasable upon exercise.
Exercise of Debt Warrants
Each debt warrant will entitle the holder to purchase for cash the principal
amount of debt securities at the exercise price set forth or to be determined
as set forth in the prospectus supplement. Debt warrants may be exercised at
any time up to the close of business on the expiration date set forth in the
prospectus supplement. After the close of business on the expiration date,
unexercised debt warrants will become void.
Debt warrants may be exercised in the manner set forth in the prospectus
supplement. Upon receipt of payment and the properly completed and duly
executed warrant certificate at the corporate trust office of the debt warrant
agent or any other office indicated in the prospectus supplement, Dow will, as
soon as practicable, forward the debt securities purchased upon any exercise.
If less than all of the debt warrants represented by the debt warrant
certificate are exercised, a new debt warrant certificate will be issued for
the remaining amount of debt warrants.
PLAN OF DISTRIBUTION
Dow may sell the securities:
. directly to purchasers, or
. through agents, underwriters, or dealers, or
. through a combination of any of these methods of sale.
Dow may distribute the securities from time to time in one or more
transactions at a fixed price or prices, which may be changed, or at market
prices prevailing at the time of sale, at prices related to the prevailing
market prices or at negotiated prices.
Dow may determine the price or other terms of the securities offered under
this prospectus by use of an electronic auction. Dow will describe how any
auction will determine the price or any other terms, how potential investors
may participate in the auction and the nature of the underwriters' obligations
in the related supplement to this prospectus.
23
Dow may designate agents to solicit offers to purchase the securities from
time to time. These agents may be deemed to be underwriters, as defined in the
Securities Act of 1933, involved in the offer or sale of the securities. The
prospectus supplement will name the agents and any commissions Dow pays them.
Agents may be entitled to indemnification by Dow against certain liabilities,
including liabilities under the Securities Act of 1933, under agreements
between Dow and the agents, and the agents or their affiliates may extend
credit to or engage in transactions with or perform services for Dow in the
ordinary course of business. Unless otherwise indicated in the prospectus
supplement, any agent will be acting on a reasonable efforts basis for the
period of its appointment.
If Dow uses any underwriters in the sale of any of the securities, Dow will
enter into an underwriting agreement with them at the time of sale and the
names of the underwriters and the terms of the transaction will be set forth in
the prospectus supplement that the underwriters use to make resales of the
securities. The underwriters may be entitled under the relevant underwriting
agreement to indemnification by Dow against certain liabilities, including
liabilities under the Securities Act of 1933, and the underwriters or their
affiliates may extend credit to or engage in transactions with or perform
services for Dow in the ordinary course of business.
If Dow uses dealers in the sale of the securities, Dow will sell the
securities to those dealers, as principal. The dealers may then resell the
securities to the public at varying prices to be determined by them at the time
of resale. Dealers may be entitled to indemnification by Dow against certain
liabilities, including liabilities under the Securities Act of 1933, and the
dealers or their affiliates may extend credit to or engage in transactions with
or perform services for Dow in the ordinary course of business.
Shares of Dow common stock are principally traded on the New York Stock
Exchange. Shares of Dow common stock also are listed on the Chicago, Pacific,
Amsterdam, Berlin, Brussels, Dusseldorf, Frankfurt, Hamburg, Hannover, London,
Paris, Switzerland and Tokyo exchanges and are traded on the Toronto, Boston,
Cincinnati and Philadelphia Exchanges. Other than the common stock and unless
otherwise disclosed in the applicable prospectus supplement, Dow does not
propose to list the offered securities on a securities exchange, and any
underwriters or dealers will not be obligated to make a market in the offered
securities. Dow may elect to list any series of offered securities on an
exchange, and in the case of the common stock, on any additional exchange, but,
unless otherwise specified in the applicable prospectus supplement, Dow will
not be obligated to do so. Dow can give no assurance as to the liquidity of the
trading market for any of the offered securities.
LEGAL MATTERS
The validity of the securities offered by this prospectus will be passed
upon for Dow by Charles J. Kalil, Dow's Assistant General Counsel and for any
underwriters or agents by Mayer, Brown, Rowe & Maw, Chicago, Illinois. As of
May 31, 2002, Mr. Kalil beneficially owned 6,794 shares of Dow common stock,
and held options to purchase 77,050 shares of Dow common stock, of which
options to purchase 47,966 shares of Dow common stock were exercisable. The
opinions of Mr. Kalil and Mayer, Brown, Rowe & Maw may be conditioned upon and
may be subject to assumptions regarding, future action required to be taken by
Dow and any underwriter(s), dealer(s) or agent(s) in connection with the
issuance and sale of any securities. The opinions of Mr. Kalil and Mayer,
Brown, Rowe & Maw with respect to securities may be subject to other conditions
and assumptions, as indicated in the prospectus supplement. Mayer, Brown, Rowe
& Maw from time to time represents Dow in connection with certain matters.
EXPERTS
The Dow consolidated financial statements and related financial statement
schedule incorporated in this prospectus by reference to Dow's Annual Report on
Form 10-K for the year ended December 31, 2001 have been
24
audited by Deloitte & Touche LLP, independent auditors, as stated in their
reports, which are incorporated herein by reference (which report on the
consolidated financial statements expresses an unqualified opinion and includes
an explanatory paragraph relating to a change in the method of accounting for
derivative instruments and hedging activities to conform to Statement of
Financial Accounting Standards No. 133), and have been so incorporated in
reliance upon the reports of such firm, given upon their authority as experts
in accounting and auditing. The consolidated balance sheet of Union Carbide
Corporation ("Union Carbide") and subsidiaries as of December 31, 2000, and the
related consolidated statements of income, stockholders' equity, and cash flows
for each of the years in the two-year period ended December 31, 2000 (not
presented separately therein) incorporated in this registration statement by
reference to Dow's Annual Report on Form 10-K for the year ended December 31,
2001 have been audited by KPMG LLP, independent auditors to Union Carbide prior
to the merger of Union Carbide and a wholly owned subsidiary of Dow. Such
consolidated financial statements have been so incorporated in reliance upon
the report of KPMG LLP, given upon their authority as experts in accounting and
auditing.
WHERE YOU CAN FIND MORE INFORMATION
Dow files reports, proxy statements and other information with the
Securities and Exchange Commission under the Securities Exchange Act of 1934.
You may read and copy that information at the Commission's Public Reference
Room located at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the
Commission at 1-800-SEC-0330 for further information relating to the Public
Reference Room. You may also obtain copies of this information by mail from the
Public Reference Section of the Commission, 450 Fifth Street, N.W., Washington,
D.C. 20549, at prescribed rates.
The Commission also maintains an Internet world wide web site that contains
reports, proxy statements and other information about issuers, including Dow,
that file electronically with the Commission. The address of that site is
http://www.sec.gov.
You can also inspect reports, proxy statements and other information about
Dow at the offices of the New York Stock Exchange, 20 Broad Street, New York,
New York 10005.
The Commission allows Dow to "incorporate by reference" information into
this prospectus. This means that Dow can disclose important information to you
by referring you to another document filed separately with the Commission. The
information incorporated by reference is considered to be a part of this
prospectus, except for any information that is superseded by information that
is included directly in this document.
This prospectus incorporates by reference the documents listed below that
Dow has previously filed with the Commission. The documents contain important
information about Dow and Dow's financial condition.
Dow's Filings with the Commission Period
--------------------------------- ------
Annual Report on Form 10-K...... Year ended December 31, 2001
Quarterly Reports on Form 10-Q.. Quarter ended March 31, 2002
Quarter ended June 30, 2002
Current Reports on Form 8-K..... January 3, 2002
January 31, 2002
April 25, 2002
July 25, 2002
August 13, 2002
August 26, 2002
Dow also incorporates by reference any future filings it makes with the
Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of
the Securities Exchange Act of 1934 (1) after the date of the filing of this
registration statement and before its effectiveness and (2) until Dow has sold
all of the securities to which this prospectus relates or the offering is
otherwise terminated. Dow's subsequent filings with the Securities and Exchange
Commission will automatically update and supersede information in this
prospectus.
25
You may obtain a copy of any of the documents incorporated by reference in
this registration statement at no cost by writing to or telephoning Dow at the
following address and telephone number:
Office of the Corporate Secretary
The Dow Chemical Company
2030 Dow Center
Midland, Michigan 48674
Telephone: 989-636-1792
Dow has not authorized anyone to give any information or make any
representation about Dow that is different from, or in addition to, that
contained in this prospectus or in any of the materials that have been
incorporated into this document. Therefore, if anyone does give you information
of this sort, you should not rely on it. This prospectus is an offer to sell or
buy only the securities described in this document, but only under
circumstances and in jurisdictions where it is lawful to do so. The information
contained in this registration statement speaks only as of the date of this
document unless the information specifically indicates that another date
applies.
26
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following table sets forth the estimated expenses in connection with the
issuance and distribution of the securities registered hereby:
SEC registration fee........ $138,000
Printing and engraving costs $ 25,000
Legal fees and expenses..... $ 25,000
Accounting fees and expenses $ 30,000
Trustee fees and expenses... $ 10,000
Rating agency fees.......... $375,000
Miscellaneous............... $147,000
--------
Total................ $750,000
========
Item 15. Indemnification of Officers and Directors.
Under Article VI of its Restated Certificate of Incorporation, Dow may
indemnify its directors, officers, employees and agents to such extent as is
permitted by the laws of the State of Delaware and as Dow's bylaws may from
time to time provide. Section 145 of the General Corporation Law of the State
of Delaware empowers Dow to indemnify, subject to the standards and limitations
therein prescribed, any person in connection with any action, suit or
proceeding brought or threatened by reason of the fact that such person is or
was a director, officer, employee or agent of Dow or is or was serving in such
capacity with respect to another corporation or other enterprise at the request
of Dow. Under Section VI of Dow's bylaws, Dow is required to indemnify its
directors, officers and employees to the full extent permitted by Delaware law
whenever such a person is, or is threatened to be made, a defendant in any
threatened, pending or completed legal proceeding. Section VI also gives Dow
discretion to indemnify directors, officers, employees and agents in any
threatened, pending or completed legal proceedings to which they are, or are
threatened to be made, a party. Dow maintains a directors' and officers'
liability insurance policy that indemnifies Dow's directors and officers
against certain losses in connection with claims made against them for certain
wrongful acts.
Item 16. Exhibits.
A list of exhibits filed herewith or incorporated by reference is contained
in the Exhibit Index which is incorporated herein by reference.
Item 17. Undertakings.
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from
II-1
the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price
represent no more than 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table
in the effective registration statement; and
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;
provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if
the registration statement is on Form S-3, Form S-8 or Form F-3, and the
information required to be included in a post-effective amendment by
those paragraphs is contained in periodic reports filed with or
furnished to the Commission by the registrant pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to
be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(4) That, for purposes of determining any liability under the Securities
Act of 1933, each filing of the registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and,
where applicable, each filing of an employee benefit plan's annual report
pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be deemed to
be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(5) That, for purposes of determining any liability under the Securities
Act of 1933, the information omitted from the form of prospectus filed as
part of this registration statement in reliance upon Rule 430A and contained
in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1)
or (4) or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
(6) That, for the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
(7) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant, pursuant to the provisions referred
to in Item 15, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act of 1933 and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of
expenses incurred or paid by a director, officer or controlling person of
the registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection
with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the
Securities Act of 1933 and will be governed by the final adjudication of
such issue.
II-2
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this amendment no. 2 to
the registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized in the County of Midland, State of Michigan, on
August 29, 2002.
THE DOW CHEMICAL COMPANY
By: /S/ J. PEDRO REINHARD
-----------------------------
J. Pedro Reinhard Executive
Vice President and Chief
Financial Officer
Pursuant to the requirements of the Securities Act of 1933, this amendment
no. 2 to the registration statement has been signed by the following persons in
the capacities indicated on August 29, 2002.
* Director, President and Chief
----------------------------- Executive Officer (principal
M. D. Parker executive officer)
/S/ J. P. REINHARD Director and Executive Vice
----------------------------- President and Chief Financial
J. P. Reinhard Officer (principal financial
officer)
/S/ F. H. BROD Vice President and Controller
----------------------------- (principal accounting officer)
F. H. Brod
* Director and Executive Vice
----------------------------- President
A. A. Allemang
* Director
-----------------------------
J. K. Barton
* Director and Vice Chairman of
----------------------------- the Board
A. J. Carbone
* Director
-----------------------------
J. M. Cook
* Director
-----------------------------
J. C. Danforth
* Director
-----------------------------
W. D. Davis
* Director
-----------------------------
B. H. Franklin
* Director
-----------------------------
J. M. Ringler
* Director
-----------------------------
H. T. Shapiro
II-3
* Director and Chairman of the
----------------------------- Board
W. S. Stavropoulos
* Director
-----------------------------
P. G. Stern
*By: /S/ J. PEDRO REINHARD
--------------------------
J. Pedro
Reinhard Attorney-in-Fact
II-4
EXHIBIT INDEX
Exhibit
Number Description
------- -----------
1.1 Form of Underwriting Agreement (to be filed on Form 8-K).
3.1 Restated Certificate of Incorporation of The Dow Chemical Company. (Filed as Exhibit 3(i) to
Dow's Annual Report on Form 10-K for the year ended December 31, 2000 (File No. 1-3433), and
incorporated by reference herein.)
3.2 Bylaws of The Dow Chemical Company. (Filed as Exhibit 3(ii) to Dow's Quarterly Report on Form
10-Q for the quarter ended June 30, 2002 (File No. 1-3433), and incorporated by reference herein.)
4.1 Indenture, dated as of April 1, 1992, between The Dow Chemical Company and The First National
Bank of Chicago, as trustee (Filed as Exhibit 4.1 to Dow's Registration Statement on Form S-3
(No. 33-88617), and incorporated by reference herein.).
4.2 Supplemental Indenture, dated as of January 1, 1994, between the Dow Chemical Company and
The First National Bank of Chicago, as trustee (Filed as Exhibit 4.2 to Dow's Registration Statement
on Form S-3 (No. 33-88617), and incorporated by reference herein.).
4.3 Second Supplemental Indenture, dated as of October 1, 1999, between the Dow Chemical Company
and Bank One Trust Company, N.A. (formerly The First National Bank of Chicago), as trustee (Filed
as Exhibit 4.3 to Dow's Registration Statement on Form S-3 (No. 33-88617), and incorporated by
reference herein.).
4.4 Third Supplemental Indenture, dated as of May 15, 2001, between the Dow Chemical Company and
Bank One Trust Company, N.A., as trustee (Filed as Exhibit 4.4 to Dow's Registration Statement on
Form S-4 (No. 333-67368), and incorporated by reference herein.).
4.5 Form of Common Stock Warrant Agreement (to be filed on Form 8-K).
4.6 Form of Preferred Stock Warrant Agreement (to be filed on Form 8-K).
4.7 Form of Debt Securities. (Filed as Exhibit 4.2 to Dow's Registration Statement on Form S-3
(No. 33-32714), and incorporated by reference herein.)
4.8 Form of Debt Warrant Agreement. (Filed as Exhibit 4.3 to Dow's Registration Statement on
Form S-3 (No. 33-44369), and incorporated by reference herein.)
5.1 Opinion of Charles J. Kalil, Assistant General Counsel of Dow.
12.1 Computation of Ratio of Earnings to Fixed charges.
23.1 Consent of Deloitte & Touche LLP, independent auditors of The Dow Chemical Company
23.2 Consent of KPMG LLP, independent auditors of Union Carbide Corporation
23.3 Consent of Charles J. Kalil (included in Exhibit 5.1).
24.1 Power of Attorney.*
25.1 Statement of Eligibility on Form T-1 of Bank One Trust Company, N.A.*
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*Previously filed
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