Summary: Whirlpool Corp.

Whirlpool repurchased $1.15 billion of stock in 2018, including via a $1 billion modified Dutch auction tender offer. This follows $750 million repurchased in 2017. We believe the tender offer, initially funded with the net proceeds from a $1 billion term loan, was driven by Whirlpool's agreement to sell its Embraco compressor business to Nidec Corp. for $1.08 billion, which has yet to close. The Embraco disposal proceeds will be used for debt repayment, resulting in pro forma S&P Global Ratings-adjusted leverage slightly below 3x, compared to around 3.5x as of Dec. 31, 2018. Whirlpool stated on its fourth quarter earnings call that it expects to reduce leverage close to its 2x gross debt-to-EBITDA target by the end of 2019,

...Whirlpool repurchased $1.15 billion of stock in 2018, including via a $1 billion modified Dutch auction tender offer. This follows $750 million repurchased in 2017. We believe the tender offer, initially funded with the net proceeds from a $1 billion term loan, was driven by Whirlpool's agreement to sell its Embraco compressor business to Nidec Corp. for $1.08 billion, which has yet to close. The Embraco disposal proceeds will be used for debt repayment, resulting in pro forma S&P Global Ratings-adjusted leverage slightly below 3x, compared to around 3.5x as of Dec. 31, 2018. Whirlpool stated on its fourth quarter earnings call that it expects to reduce leverage close to its 2x gross debt-to-EBITDA target by the end of 2019, which we view as optimistic, but nevertheless implies that S&P Global Ratings-adjusted leverage will comfortably fall below 3x by year end 2019....

Summary