Western Digital Announces Successful Repricing of €881 Million of Euro Term B Loans
March 23 2017 - 10:35AM
Business Wire
Western Digital Corporation (NASDAQ: WDC) (“Western Digital” or
the “Company”) today announced that it has successfully repriced
€881 million of new Euro-denominated term B-2 loans at an interest
rate of Euribor + 2.00%, which priced 125 basis points lower than
its previous Euro-denominated term B-1 loans issued in September
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 Euro-denominated term B loans since issuing its original
Euro-denominated term B loans in connection with its acquisition of
SanDisk Corporation in May 2016. In connection with this
transaction, Western Digital settled the previous Euro-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 $12 million beginning on March 23, 2017, resulting
from the 125 basis point reduction in interest spread. The new term
loans have the same remaining tenor as the previous
Euro-denominated term B-1 loans and mature on April 29, 2023.
The new financing follows the Company’s successful pricing last
week of approximately $3.0 billion of new USD term B-2 loans that
replaced its previous USD term B-1 loans. In combination with
today’s financing, the aggregate annual cash interest savings that
the two transactions are expected to generate is approximately $42
million beginning in the fourth quarter of fiscal 2017.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170323005828/en/
Western Digital Corp.Media:Jim Pascoe,
408-717-6999jim.pascoe@wdc.comorInvestors:Bob Blair,
949-672-7834robert.blair@wdc.com
Western Digital (NASDAQ:WDC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Western Digital (NASDAQ:WDC)
Historical Stock Chart
From Apr 2023 to Apr 2024