October 1, 2009 / 2:10 PM / 8 years ago

UPDATE 1-Dow Chemical paying $1 bln to end bridge loan

* Completes sale of Morton Salt for $1.675 bln

* Using about $1 bln to pay off bridge loan

* Payoff ends loan used to finance Rohn & Haas deal

* Stock falls 1.6 percent

NEW YORK, Oct 1 (Reuters) - Dow Chemical Co DOW.N said on Thursday it is spending about $1 billion to pay off the outstanding balance of a bridge loan it used to fund its acquisition of Rohm and Haas this year.

The company used a big portion of the proceeds from its sale of Morton Salt to Germany’s K+S SDFG.DE for $1.675 billion, it said in a statement announcing closing of the Morton sale.

“With this transaction, we have accomplished our objective of fully paying off the bridge loan and eliminating this financing facility,” said Andrew Liveris, Dow’s chairman and chief executive officer.

“We accomplished this well ahead of our year-end goal, and we remain ahead of schedule on all other financial milestones related to the Rohm and Haas acquisition,” he added.

The remaining proceeds from the Morton Salt sale, as well as proceeds from future divestiture agreements already in place, will be used to pay down other debt, in line with the company’s broader deleveraging plan, Dow said.

The company’s debt had become a concern for some investors and Monday’s announcement of the Morton sale sent Dow’s stock up. But on Thursday it fell 1.65 percent to $25.64 in early trading on the New York Stock Exchange (Reporting by Steve James; Editing by Derek Caney)

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