By Andrea Heisinger
New York, Feb. 22 - Whirlpool Corp. priced $500 million of senior notes (Baa3/BBB-/BBB) in two parts on Friday, an informed source said.
The sale included $250 million of 3.7% 10-year notes sold at 99.801 to yield 3.724% with a spread of Treasuries plus 175 basis points. Official talk was in the 180 bps area, plus or minus 5 bps.
There is a make-whole call at 25 bps over Treasuries.
A $250 million tranche of 5.15% 30-year bonds priced at 99.636 to yield 5.174% with a spread of Treasuries plus 200 bps. The 30-year bonds had guidance in the 205 bps area, plus or minus 5 bps.
The bonds have a make-whole redemption at Treasuries plus 30 bps.
There is a change-of-control put at 101%.
Active bookrunners were BNP Paribas Securities Corp. and Citigroup Global Markets Inc. Passive bookrunners were J.P. Morgan Securities LLC and RBS Securities Inc.
Proceeds will be used for general corporate purposes including repayment of $500 million of 5.5% medium-term notes maturing in March.
The Benton Harbor, Mich.-based appliance maker was last in the U.S. bond market with a $300 million sale of 4.7% 10-year notes priced at 300 bps over Treasuries on May 29, 2012.
| Issuer: | Whirlpool Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc. (active), J.P. Morgan Securities LLC, RBS Securities Inc. (passive)
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | March 1, 2023
|
| Coupon: | 3.7%
|
| Price: | 99.801
|
| Yield: | 3.724%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 180 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | March 1, 2043
|
| Co-managers: | Mitsubishi UFJ Securities (USA) Inc., Wells Fargo Securities LLC, BofA Merrill Lynch, ING Financial Markets LLC
|
| Coupon: | 5.15%
|
| Price: | 99.636
|
| Yield: | 5.174%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 205 bps area, plus or minus 5 bps
|
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