Whirlpool secures financing for Maytag buyout

Whirlpool secures financing for Maytag buyout
 
Date December 07, 2005
Section(s) Local News
Brief  
 
By PETER HUSSMANN

Editor

Whirlpool Corp. announced on Tuesday that it has entered into two new lines of credit totalling $2.7 billion that will allow it to complete the proposed acquisition of the Maytag Corp.

Whirlpool said it has entered into a $2.2 billion, five-year revolving credit agreement with $1.2 billion available immediately and another $1 billion available upon final clearance for the buyout from the Antitrust Division of the Department of Justice. It also also entered into a new $500 million, one-year term-out option, which will be made available upon completion of the deal.

Both loans, Whirlpool said, replace the existing $1.2 billion revolving credit lines. The financing was co-arranged by J.P. Morgan Securities Inc. and Citigroup Global Markets Inc.

In August, the Maytag board of directors agreed to be purchased by rival Whirlpool in a $1.7 billion stock and cash offer. In addition, Whirlpool has agreed to assume approximately $1 billion in Maytag debt.

Last week, Whirlpool and Maytag said they have agreed not to close on their planned merger until Feb. 27, 2006, to give antitrust regulators more time to review the deal.

Maytag shareholders will vote on the merger offer at a special meeting set for 10:30 a.m. Dec. 22 in Newton. Shareholder approval is needed for the merger to move forward.

“These agreements put into place the financing arrangements necessary for us to complete the acquisition of Maytag,” said Roy Templin, Whirlpool executive vice president and chief financial officer. “The credit agreements provide us with substantial flexibility.”

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