Ashland Inc. announces completion of senior notes offering

February 26, 2013

COVINGTON, Ky. - Ashland Inc. (NYSE: ASH) announced today that it has closed its previously announced offering of $600 million aggregate principal amount of 3.000% senior notes due 2016, $700 million aggregate principal amount of 3.875% senior notes due 2018, $650 million aggregate principal amount of 4.750% senior notes due 2022 and $350 million aggregate principal amount of 6.875% senior notes due 2043 (collectively, the Notes). The Notes are unsecured, unsubordinated obligations of Ashland.

Ashland used the net proceeds of the Notes offering (after deducting the initial purchasers' discounts and other fees and expenses), together with cash on hand, (i) to prepay $1.21 billion of the term loan A facility under the senior secured credit facility, (ii) to pay off in full the remaining $1.03 billion outstanding under the term loan B facility under the senior secured credit facility and (iii) to pay $52 million to terminate certain interest rate swaps entered into in connection with the senior secured credit facility.  The remaining principal amount outstanding under Ashland's term loan A facility is $200 million.  In connection with the completion of the Notes offering and the foregoing use of proceeds, Ashland reaffirms its expectation that fiscal 2013 interest expense under U.S. GAAP will be approximately $180 million, excluding expenses associated with the prepayment of debt and the termination of related interest rate swaps.

The Notes were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.

This news release shall not constitute an offer to sell, or a solicitation of an offer to buy, any security, including the Notes. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.

About Ashland

In more than 100 countries, the people of Ashland Inc. (NYSE: ASH) provide the specialty chemicals, technologies and insights to help customers create new and improved products for today and sustainable solutions for tomorrow. Our chemistry is at work every day in a wide variety of markets and applications, including architectural coatings, automotive, construction, energy, food and beverage, personal care, pharmaceutical, tissue and towel, and water treatment. Visit ashland.com to see the innovations we offer through our four commercial units - Ashland Specialty Ingredients, Ashland Water Technologies, Ashland Performance Materials and Ashland Consumer Markets.