Whirlpool gets $2.5 billion delayed-draw loan for InSinkErator purchase

By Wendy Van Sickle

Columbus, Ohio, Sept. 23 – Whirlpool Corp. entered into a $2.5 billion term loan agreement with Sumitomo Mitsui Banking Corp. as administrative agent and bookrunner on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds are to be used on a delayed-draw basis to fund a majority of the $3 billion purchase price consideration for the company’s acquisition from Emerson Corp. of Emerson’s InSinkErator business.

The loan agreement as a commitment termination date of May 7, 2023, which may be extended by for up to two consecutive three-month periods if the acquisition has not closed by that time.

Sumitomo, BNP Paribas, ING Bank NV, Dublin Branch, Mizuho Bank, Ltd. and Societe Generale are the joint lead arrangers and the syndication agents.

The term loan facility is divided into two tranches: a $1 billion tranche with a maturity date 18 months following the date that funds are borrowed and a $1.5 billion tranche with a maturity date three years following the date that funds are borrowed.

Borrowings bear interest at SOFR plus 75 basis points for the 18-month tranche and SOFR plus 100 bps for the three-year tranche. The ticking fee for both parts is 10 bps.

Covenants include a rolling 12-month interest coverage ratio required to be at least 3x for each fiscal quarter.

Whirlpool is a Benton Harbor, Mich.-based appliance maker.

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