Western Digital Announces Successful Repricing of $2.963 Billion of USD Term B Loans
November 08 2017 - 4:30PM
Business Wire
Western Digital Corporation (NASDAQ: WDC) (“Western Digital” or
the “company”) today announced that it has successfully priced
$2.963 billion of new U.S. dollar-denominated term B-3 loans at an
interest rate of LIBOR + 2.00%, which priced 75 basis points lower
than its previous term B-2 loans issued in March 2017. This new
financing marks the company’s third successful repricing of U.S.
dollar-denominated term B loans since issuing its original term B
loans in connection with its acquisition of SanDisk Corporation in
May 2016. In connection with this transaction, Western Digital
settled the previous U.S. dollar-denominated term B-2 loans with
the proceeds of this new loan. The new financing is expected to
generate annual cash interest savings of approximately $22 million
beginning on Nov. 8, 2017, resulting from the 75 basis point
reduction in interest spread. The new term loans have the same
remaining tenor as the previous U.S. dollar-denominated term B
loans and mature on April 29, 2023.
About Western DigitalWestern Digital creates environments
for data to thrive. The company is driving the innovation needed to
help customers capture, preserve, access and transform an
ever-increasing diversity of data. Everywhere data lives, from
advanced data centers to mobile sensors to personal devices, our
industry-leading solutions deliver the possibilities of data.
Western Digital® data-centric solutions are marketed under the
G-Technology™, HGST, SanDisk®, Tegile™, Upthere™ and WD® brands.
Financial and investor information is available on the company's
Investor Relations website at investor.wdc.com.
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
concerning expected annual interest expense savings. These
forward-looking statements are based on management's current
expectations and are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements, including: uncertainties
with respect to the company's business ventures with Toshiba;
volatility in global economic conditions; business conditions and
growth in the storage ecosystem; impact of competitive products and
pricing; market acceptance and cost of commodity materials and
specialized product components; actions by competitors; unexpected
advances in competing technologies; the development and
introduction of products based on new technologies and expansion
into new data storage markets; risks associated with acquisitions,
mergers and joint ventures; difficulties or delays in
manufacturing; and other risks and uncertainties listed in the
company's filings with the Securities and Exchange Commission (the
"SEC"), including the company's Form 10-Q filed with the SEC on
Nov. 7, 2017, to which your attention is directed. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date hereof, and the company undertakes no
obligation to update these forward-looking statements to reflect
subsequent events or circumstances.
Western Digital, WD, SanDisk, Tegile and Upthere are registered
trademarks or trademarks of Western Digital Corporation or its
affiliates in the U.S. and/or other countries. Other trademarks,
registered trademarks, and/or service marks, indicated or
otherwise, are the property of their respective owners. © 2017
Western Digital Corporation or its affiliates. All rights
reserved.
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version on businesswire.com: http://www.businesswire.com/news/home/20171108006572/en/
Company contacts:Western Digital Corp.Media Contact:Jim Pascoe,
408.717.6999jim.pascoe@wdc.comorInvestor Contact:Bob Blair,
949.672.7834robert.blair@wdc.com
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