SAN JOSE, Calif.--(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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180227006061/en/
Western Digital Corp.
Media Contact:
Jim Pascoe
408.717.6999
jim.pascoe@wdc.com
or
Investor
Contact:
Bob Blair
949.672.7834
robert.blair@wdc.com
Source: Western Digital Corporation
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