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Overview

Bank of China Contributes $40 million USD to $1 billion USD term loan to Whirlpool Corporation in 2018 for share repurchase purposes

Commitments (Constant USD, 2023)$40,251,852
Commitment Year•2018Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 23, 2018
End (actual)
Aug 9, 2019
Last repayment (originally scheduled)
Oct 23, 2019

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • BNP Paribas S.A.
  • Citibank, N.A.
  • Crédit Industriel et Commercial (CIC)
  • Credit Suisse AG
  • HSBC Bank USA, N.A.
  • ING Bank N.V.
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Santander Bank, N. A. (formerly Sovereign Bank)
  • Société Générale S.A. (SocGen or Societe Generale)
  • The Northern Trust Company
  • U.S. Bank National Association
  • UniCredit Bank AG
  • Wells Fargo Bank N.A.

State-owned Banks

  • Bayerische Landesbank (BayernLB)

Receiving agencies

Private Sector

  • Whirlpool Corporation

Loan description

Bank of China Contributes to $1 billion USD term loan to Whirlpool Corporation in 2018 for share repurchase purposes

Interest rate (t₀)•3.64063%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•1.5 years

Narrative

Full Description

Project narrative

On April 23, 2018, financial close was reached on a $1,000,000,000 USD syndicated loan agreement involving a syndicate of 20 banks — including Bank of China — entered into with Whirlpool Corporation — a major multinational manufacturer of home appliances headquartered in the United States. The maturity of the loan was a year (maturity date was April 22, 2019) with an option to extend for 6 months. The interest rate was LIBOR plus a spread based on debt ratings. The proceeds of the Term Loan Agreement were used to fund accelerated share repurchases through a modified Dutch auction tender offer. While Bank of China contributed $40,000,000 USD to this loan, the following lenders also participated: Citibank, N.A. ($78,000,000 USD), JPMorgan Chase Bank, N.A. ($78,000,000 USD), BNP Paribas ($78,000,000 USD), Mizuho Bank, Ltd. ($78,000,000 USD), Wells Fargo Bank, National Association ($78,000,000 USD), Bank of America, N.A. ($60,000,000 USD), HSBC Bank USA, National Association ($60,000,000 USD), ING Bank N.V., Dublin Branch ($60,000,000 USD), Intesa Sanpaolo S.p.A. - New York Branch ($60,000,000 USD), MUFG Bank, Ltd. ($60,000,000 USD), UniCredit Bank AG, New York Branch ($60,000,000 USD), Santander Bank, N.A. ($40,000,000 USD), The Bank of Nova Scotia ($40,000,000 USD), Bayerische Landesbank, New York Branch ($25,000,000 USD), U.S. Bank National Association ($25,000,000 USD), Credit Industriel et Commercial, New York Branch ($20,000,000 USD), Credit Suisse (Switzerland) Ltd. ($20,000,000 USD), Societe Generale ($20,000,000 USD), and The Northern Trust Company ($20,000,000 USD). The loan was amended on May 14, 2018 and August 30, 2018. On March 27, 2019, the company extended the maturity date by 6 months and is now due on October 23, 2019. The Company also has agreed to repay the outstanding term loan amounts with the net cash proceeds received from the closing of the Embraco sale transaction. On August 9, 2019, the company repaid the $1 billion debt.

Staff comments

1. Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances headquartered in Benton Charter Township, Michigan. In 2023, the company had an annual revenue of approximately $19 billion in sales, around 59,000 employees, and more than 55 manufacturing and technology research centers globally. 2. AidData estimates the interest rate by adding the 6-month average LIBOR rate in April 2018 and the spread based on debt ratings (according to the SEC filings, the spread in 2018 is 1.125%). The total interest is (2.52%+1.125%) 3.645%.