SAN JOSE, Calif.--(BUSINESS WIRE)--
Western DigitalCorp. (NASDAQ: WDC) ("Western Digital" or the
"company") today announced that it has successfully priced $2.455
billion of new U.S. dollar-denominated term B-4 loans at an interest
rate of LIBOR + 1.75%, which priced 25 basis points lower than its
previous term B-3 loans issued in November 2017. This new financing
marks the company's fourth successful repricing of U.S.
dollar-denominated term B loans since issuing its original term B loans
in connection with its acquisition of SanDisk Corporation in May 2016.
In connection with this transaction, Western Digital settled the
previous U.S. dollar-denominated term B-3 loans with the proceeds of
this new loan. The new financing is expected to generate annual cash
interest savings of approximately $6 million beginning on May 15, 2018.
The new term loans have the same remaining tenor as the previous U.S.
dollar-denominated term B loans and mature on April 29, 2023.
The company repurchased shares of its common stock in the amount of $155
million during its third fiscal quarter and intends to repurchase
additional shares under its existing stock repurchase program for an
amount of up to $1 billion. At least 50 percent of the repurchases are
targeted for the remainder of the company's current fiscal quarter. The
company has already commenced repurchasing its common stock and the
exact amount of repurchases will depend on market conditions.
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 at investor.wdc.com.
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 expense savings
and potential repurchases in the future by the company of its common
stock. 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; 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
Securities and Exchange Commission (the "SEC"), including the company's
Form 10-Q filed with the SEC on May 8, 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 subsequent events or circumstances.
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20180515005874/en/
Western Digital Corp.
Jay Iyer, 408.801.2067
Jim Pascoe, 408.717.6999
Source: Western Digital
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