Corteva 8-K

Summary

North Carolina PFAS and Fayetteville Works settlement. Corteva, Chemours and DuPont agreed to pay $455M over 15 years to resolve statewide PFAS claims and related Fayetteville Works claims; Corteva’s share is approximately $66M. Corteva and DuPont also guarantee Chemours’ share and will establish a reserve that North Carolina can access if Chemours fails to comply with its consent order.

Key Figures

• Settlement payments: $455M collectively over 15 years; Corteva’s share is approximately $66M.
• Chemours payment guarantee: Corteva and DuPont share the guarantee on a 29%/71% basis, respectively. A reserve fund established through a line of credit, letter of credit and/or surety bond is capped at $135M.
• Memorandum of Understanding qualified-spend cap: $4B. North Carolina settlement payments count as $210M against the cap, based on net present value using an 8% discount rate and payments spread equally over 25 years from when the settlement becomes final.
• Future contributions to the MOU escrow account are considered satisfied by the parties’ New Jersey and North Carolina settlement payments, which qualify for withdrawal and exceed future contribution obligations.

Investor Takeaways

• Chemours’ compliance with the North Carolina consent order is a key watchpoint; noncompliance could allow the state to access the reserve.