Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

WHR

Whirlpool Upsizes $2 Billion Notes Offering

Whirlpool upsized and priced a $2 billion secured notes offering, lifting each tranche by $250 million from the company’s earlier plan.

The company sold $1.0 billion of 7.500% senior secured second lien notes due 2031 and $1.0 billion of 7.875% senior secured second lien notes due 2034. The earlier structure called for $750 million of each series, so the total offering grew to $2.0 billion from $1.5 billion.

The 2031 notes carry a July 1, 2031 maturity, while the 2034 notes mature July 1, 2034. Interest begins June 16, 2026 and will be paid semiannually.

Whirlpool said it expects to close the offering on June 16, 2026, alongside its proposed asset-based revolving credit facility.

Proceeds, together with borrowings under that credit facility, will be used to fund tender payments for two existing senior note issues: the 1.250% notes due 2026 and the 1.100% notes due 2027. Any of those notes left outstanding after the tender will be satisfied and discharged through funds deposited with the trustee. The company also plans to use proceeds to repay amounts outstanding under its existing unsecured revolving credit facility and cover fees and expenses.

The new notes will be guaranteed by each domestic and Canadian subsidiary that borrows under, or guarantees obligations under, the new asset-based credit facility. They will be secured on a second-priority basis by the assets that secure the asset-based facility on a first-priority basis. Today the company's shares have moved 0.63% to a price of $41.27. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS