Whirlpool Upsizes Secured Note Offering to $2 Billion, Prices at 7.50%-7.875%
Summary
Whirlpool announced it has upsized and priced its offering of senior secured second lien notes to a total of $2.0 billion, an increase from the previously announced $1.5 billion. The notes are split into two tranches, due 2031 and 2034, with interest rates of 7.500% and 7.875% respectively. This follows yesterday's news and 8-K filing regarding the initial offering. The proceeds will be used to refinance existing debt and repay an unsecured revolving credit facility, providing critical liquidity after the company reported a substantial Q1 net loss and suspended its dividend. The upsized offering and high interest rates underscore the company's significant need for capital and the current cost of borrowing given its recent financial challenges.
At the time of this announcement, WHR was trading at $41.93 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $38.38 to $111.96. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: PR Newswire.