By Cristal Cody
Tupelo, Miss., Feb. 20 – Whirlpool Corp. priced an upsized $700 million of 4.75% 10-year notes (Baa3/BBB/BBB) at 98.81 to yield 4.902%, or a spread of Treasuries plus 225 basis points, on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The issue, upsized from $500 million, priced on the tight side of guidance in the Treasuries plus 230 bps area, plus or minus 5 bps.
The company had planned to price an add-on to its 4.7% notes due June 1, 2022, but the offering was dropped from the final sale.
Whirlpool originally issued $300 million of the 4.7% notes at 99.85 to yield 4.719%, or Treasuries plus 300 bps, on June 1, 2012.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., ING Financial Markets LLC and MUFG were the bookrunners.
Proceeds will be used to repay all outstanding borrowings under the company’s €600 million term loan, and if any remain, for general corporate purposes.
Whirlpool is a Benton Harbor, Mich.-based appliance maker.
| Issuer: | Whirlpool Corp.
|
| Amount: | $700 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 26, 2029
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., ING Financial Markets LLC and MUFG
|
| Co-managers: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., BofA Merrill Lynch, Telsey Advisory Group LLC
|
| Coupon: | 4.75%
|
| Price: | 98.81
|
| Yield: | 4.902%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call before Nov. 26, 2028 at Treasuries plus 35 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 20
|
| Settlement date: | Feb. 26
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 230 bps area, plus or minus 5 bps; initial talk at Treasuries plus 250 bps-262.5 bps area
|
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