Western Digital Announces Successful Repricing of €885 Million of Euro Term B Loans
September 22 2016 - 4:05PM
Business Wire
Western Digital Corporation (NASDAQ: WDC) (“Western Digital” or
the “company”) today announced that it has successfully repriced
€885 million of new Euro-denominated term B loans at an interest
rate of Euribor + 3.25%, which priced 200 basis points lower than
its previous Euro-denominated term B loans borrowed earlier this
year in connection with the company’s acquisition of SanDisk
Corporation. In connection with this transaction, Western Digital
settled the previous Euro-denominated term B loans with the
proceeds of this new financing. The terms of the new financing are
expected to generate total annual interest savings of approximately
$23 million beginning on Sept. 22, 2016. This reflects annual cash
interest savings of approximately $20 million resulting from the
200 basis point reduction in interest spread as well as annual
non-cash interest savings of approximately $3 million from reduced
amortization of debt issuance costs associated with the previous
Euro-denominated term B loans. The company expects to incur a debt
extinguishment charge of approximately $37 million as a result of
this transaction, which will be recorded in the September 2016
quarter. The new term loans have the same remaining tenor as the
previous Euro-denominated term B loans and mature on April 29,
2023.
The new financing follows the company’s successful pricing of
$3.0 billion of new USD Term B-1 loans that, along with a voluntary
prepayment of $750 million, replaced its previous USD Term B loans
on Aug. 17, 2016. In combination with today’s financing, the
aggregate annual interest savings that the two transactions are
expected to generate is approximately $151 million beginning in the
September 2016 quarter. This reflects annual cash interest savings
of approximately $120 million.
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 Forms 10-K filed with the SEC on
Aug. 29, 2016, 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/20160922006148/en/
Western Digital Corp.Media Contact:Jim
Pascoe408.717.6999jim.pascoe@wdc.comInvestor Contact:Bob
Blair949.672.7834robert.blair@wdc.com
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