E.I. du Pont de Nemours & Co., Wilmington, Del., plans to contribute $2.9 billion to its U.S. defined benefit plan in 2017, partially funded by new bonds totaling $2 billion, the company disclosed in an 8-K filing with the SEC on Tuesday.
The company had originally said in its 10-K filing with the Securities and Exchange Commission on Feb. 2 that it expected to contribute $230 million to its U.S. DB plan in 2017. DuPont had contributed $230 million to the pension plan in 2016.
The additional discretionary contributions are being funded from debt, including the public offering of $2 billion in debt as disclosed last week, as well as “short-term borrowings, including commercial paper issuance; and cash,” according to the filing. The bond underwriting was completed on Tuesday.
DuPont announced in November it will freeze the plan effective Nov. 30, 2018. The plan was closed to new employees in January 2007.
As of Dec. 31, the company's global pension plan assets totaled $16.6 billion, while projected benefit obligations totaled $24.3 billion, for a funding ratio of 68.3%, according to the 10-K filing. The filing did not break out U.S. and non-U.S. assets.