Western Digital Announces Successful Repricing of $3.0 Billion Term B Loans and Prepayment of $750 Million Term B Loans
August 18 2016 - 8:00AM
Business Wire
Western Digital Corporation (NASDAQ: WDC) (“Western Digital” or
the “company”) today announced that it has successfully priced $3.0
billion of new U.S. dollar-denominated term B loans at an interest
rate of LIBOR + 3.75%, which priced 175 basis points lower than its
previous term B loans issued earlier this year in connection with
the company’s acquisition of SanDisk Corporation. In connection
with this transaction, Western Digital settled the previous U.S.
dollar-denominated term B loans with the proceeds of this new loan
and a voluntary cash prepayment of $750 million. The new financing
is expected to generate annual interest savings of approximately
$128 million beginning on Aug. 17, 2016. This reflects annual cash
interest savings of approximately $100 million resulting from both
the 175 basis point reduction in interest spread and the $750
million reduction in principal as well as annual non-cash interest
savings of approximately $28 million from reduced amortization of
debt issuance costs associated with the previous term B loans. 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 press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements concerning expected annual interest
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. Other risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements include: 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 and SanDisk Corporation’s Forms
10-Q filed with the SEC on May 9, 2016 and May 2, 2016,
respectively, 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
new information or events.
Western Digital, WD, the HGST logo, SanDisk and G-Technology 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160818005254/en/
Bob BlairWestern Digital Corp. Investor
Relations949.672.7834robert.blair@wdc.comorJim PascoeWestern
Digital Corp. Media408.717.5950jim.pascoe@wdc.com
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