Whirlpool's stock price dropped 7% due to the equity issuance plan.

Investing.com – Whirlpool Corporation (NYSE: WHR) stock price fell 7% after the company announced a concurrent public offering of common stock and depositary shares to raise approximately $800 million.

The home appliance manufacturer plans to issue common stock and depositary shares, with each depositary share representing 1/20th of a newly issued Series A mandatory convertible preferred stock, with a par value of $1.00 per share. The company will grant underwriters a 30-day option to purchase additional shares to cover over-allotments.

Whirlpool intends to use the net proceeds to repay part of its outstanding amounts under its revolving credit facility and for general corporate purposes, including strategic investments in vertical integration and automation.

The preferred stock is expected to have a liquidation preference of $1,000 per share. Unless converted earlier, each preferred share will automatically convert into a variable number of common shares on or around February 15, 2029, depending on the applicable conversion rate. Each depositary share will convert into a proportional interest in the corresponding portion of common shares.

Depositary share holders will receive rights and preferences corresponding to their proportionate interest in the preferred stock, including conversion rights, dividend rights, liquidation rights, and voting rights, subject to the terms of the deposit agreement. Dividend rate, conversion terms, and other provisions will be determined at pricing.

Currently, the depositary shares or preferred stock are not publicly traded. Whirlpool plans to apply for listing of the depositary shares on the New York Stock Exchange under the trading symbol “WHR.PRA.”

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