Western Digital Announces Closing of Amendment, Extension & Increase of Term A Loans & Revolving Facility, Credit Agreement A...
February 27 2018 - 10:38AM
Business Wire
Western Digital Corporation (NASDAQ: WDC) (“Western Digital” or
the “company”) today announced that it obtained a new $5.022
billion Term Loan A-1 facility maturing in 2023, reflecting a $1.0
billion increase over its previous term loan A facility and an
extension of the maturity date by approximately two years. Loans
under the Term Loan A-1 facility bear interest at a rate of LIBOR
plus an applicable margin depending on the corporate family ratings
of Western Digital, with an initial interest rate of LIBOR + 1.50%.
The proceeds of the new Term Loan A-1 loans were used to settle
Western Digital’s existing $4.022 billion Term Loan A maturing in
2021 and, together with available cash on hand and the proceeds of
its 1.50% convertible senior notes due 2024, to redeem its
outstanding 7.375% senior secured notes due 2023 in full and to,
among other things, pay fees and expenses related to the foregoing
and the other refinancing transactions. In addition, Western
Digital has obtained amendments to its senior credit facilities to,
among other things, provide for more covenant flexibility and a
release of the security and guarantees (along with additional
covenant flexibility and incremental capacity) subject to
compliance with certain conditions, including achieving a corporate
family rating of at least Ba1/BB+/BB+ from at least two of S&P,
Moody’s and Fitch and the repayment of any outstanding term B
loans, with a reinstatement if the corporate family rating falls
below Ba2/BB/BB from at least two of S&P, Moody’s and
Fitch.
Western Digital also successfully obtained commitments for a
$2.25 billion revolving credit facility maturing 2023, reflecting a
$750 million increase in the size of its revolver and an extension
of the maturity date by approximately two years. The new revolving
credit facility replaced Western Digital’s existing $1.5 billion
revolving credit facility maturing in 2021. Loans under the new
revolving credit facility bear interest at a rate of LIBOR plus an
applicable margin depending on the corporate family ratings of
Western Digital, with an initial rate of LIBOR + 1.50%. Western
Digital borrowed $500 million under the new revolving credit
facility to fund a voluntary prepayment of its USD term B-3
loans.
About Western Digital
Western 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.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. 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:
volatility in global economic conditions; uncertainties with
respect to the company’s business ventures with Toshiba; 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; impacts of new tax legislation; and other risks and
uncertainties listed in the company’s filings with the SEC,
including the company’s Form 10-Q filed with the SEC on Feb. 6,
2018, 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 events.
Western Digital, the Western Digital logo, G-Technology, HGST,
SanDisk, Tegile, Upthere and WD are registered trademarks or
trademarks of Western Digital Corporation or its affiliates in the
U.S. and/or other countries.
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version on businesswire.com: http://www.businesswire.com/news/home/20180227006061/en/
Western Digital Corp.Media Contact:Jim
Pascoe408.717.6999jim.pascoe@wdc.comorInvestor Contact:Bob
Blair949.672.7834robert.blair@wdc.com
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