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Western Digital Announces Redemption of All Outstanding 10.500% Senior Unsecured Notes Due 2024 and 7.375% Senior Secured Notes Due 2023 and Successful Execution of Transactions to Enhance Capital Structure
Western Digital's previously announced cash tender offer to purchase any
and all of its outstanding 2024 Notes resulted in its accepting for
purchase
In addition, as previously announced, on
As a result of these financing transactions, based on the current
capital structure and a current LIBOR rate of 1.67%, the company expects
to reduce its GAAP annual interest expense to approximately
About
Non-GAAP Financial Measure
The company believes the presentation of non-GAAP interest expense, when shown in conjunction with the corresponding GAAP measure, provides useful information to investors for measuring the company's financing cost and comparing it against prior periods. Specifically, the company believes non-GAAP interest expense provides useful information to both management and investors as it excludes certain noncash interest which is consistent with the financial models and estimates published by many analysts who follow the company and its peers and the company believes non-GAAP interest expense along with the related GAAP interest expense measure provide additional detail and comparability for assessing the company's results. Non-GAAP interest expense is one of the primary indicators management uses for assessing the company's performance and planning and forecasting future periods. Non-GAAP interest expense is not in accordance with, or an alternative for, interest expense prepared in accordance with GAAP and may be different from similarly titled measures used by other companies. Non-GAAP interest expense should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
concerning expected annual interest expense 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, 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
View source version on businesswire.com: http://www.businesswire.com/news/home/20180302005667/en/
Company contacts:
Media Contact:
408.717.6999
jim.pascoe@wdc.com
or
Investor
Contact:
949.672.7834
robert.blair@wdc.com
Source:
News Provided by Acquire Media