Western Digital Announces Successful Repricing of $2.985 Billion of USD Term B Loans
March 14 2017 - 1:41PM
Business Wire
Western Digital Corporation (NASDAQ: WDC) (“Western Digital” or
the “Company”) today announced that it has successfully priced
$2.985 billion of new U.S. dollar-denominated term B-2 loans at an
interest rate of LIBOR + 2.75%, which priced 100 basis points lower
than its previous term B-1 loans issued in August 2016. The
interest rate margin on the new loans is subject to an additional
25 basis point step-down following any quarter during which the
Company’s total leverage ratio is less than 1.75:1.00. This new
financing marks the Company’s second 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-1 loans with
the proceeds of this new loan. The new financing is expected to
generate annual cash interest savings of approximately $30 million
beginning on March 14, 2017, resulting from the 100 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 Digital
Western Digital is an industry-leading provider of storage
technologies and solutions that enable people to create, leverage,
experience and preserve data. The Company addresses ever-changing
market needs by providing a full portfolio of compelling,
high-quality storage solutions with customer-focused innovation,
high efficiency, flexibility and speed. Our products are marketed
under the HGST, SanDisk and WD brands to OEMs, distributors,
resellers, cloud infrastructure providers and consumers. Financial
and investor information is available on the Company's Investor
Relations website at investor.wdc.com.
Forward-Looking Statements
This news release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements concerning expected annual interest
expense savings. There are a number of risks and uncertainties that
may cause these forward-looking statements to be inaccurate
including, among others: 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; our
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
Feb. 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 and SanDisk 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/20170314006229/en/
Western Digital Corp.Media:Jim Pascoe,
408-717-6999jim.pascoe@wdc.comorInvestors:Bob Blair,
949-672-7834robert.blair@wdc.com
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