Whirlpool Plans to Sell $1.2 Billion of Bonds After Cut to Junk | Company Business News-OxBig News Network

(Bloomberg) — Whirlpool Corp. is looking to raise $1.2 billion to refinance debt, in its first bond sale since being downgraded to junk.

The company plans to sell dollar-denominated senior unsecured notes in two tranches, with maturities in 2030 and 2033, according to a person with knowledge of the matter. The size of each portion of the debt sale is yet to be determined, said the person, who asked not to be identified discussing a private transaction.

The US junk-bond market just had its busiest week since May 2024, with 13 borrowers selling deals worth just over $13 billion. Strong demand for higher-yielding debt is expected to drive more issuance in the coming weeks.

Whirlpool, which makes major home appliances worldwide, plans to use proceeds from the bond sale to repay debt under its existing term-loan facility. 

Initial price talk for the five-year notes is in the high 6% range, while the eight-year notes are expected to price 25 to 37.5 basis points above the five-year notes, said the person. 

Mizuho Financial Group Inc., BNP Paribas SA, Citigroup Inc., JPMorgan Chase & Co., and Wells Fargo & Co. are among the active bookrunners for the deal. The company has scheduled an investor call for 10:30 a.m. New York time Monday, with pricing expected to follow later the same day. The deal follows calls with investors that took place last week.

Debt distribution: WHR US Equity DDIS

Capital structure: WHR US Equity CAST

Related securities: WHR US Equity RELS

Ratings history: WHR US Equity CRPR

This story was produced with the assistance of Bloomberg Automation

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