IRVINE, Calif.--(BUSINESS WIRE)--
Western Digital Corporation (NASDAQ: WDC) ("Western Digital" or the
"company") today announced that it has successfully priced $3.0 billion
of new U.S. dollar-denominated term B loans at an interest rate of LIBOR
+ 3.75%, which priced 175 basis points lower than its previous term B
loans issued earlier this year in connection with the company's
acquisition of SanDisk Corporation. In connection with this transaction,
Western Digital settled the previous U.S. dollar-denominated term B
loans with the proceeds of this new loan and a voluntary cash prepayment
of $750 million. The new financing is expected to generate annual
interest savings of approximately $128 million beginning on Aug. 17,
2016. This reflects annual cash interest savings of approximately $100
million resulting from both the 175 basis point reduction in interest
spread and the $750 million reduction in principal as well as annual
non-cash interest savings of approximately $28 million from reduced
amortization of debt issuance costs associated with the previous term B
loans. 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.
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 press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements concerning expected annual interest 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. Other risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements include: 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 and SanDisk Corporation's Forms 10-Q filed with
the SEC on May 9, 2016 and May 2, 2016, respectively, 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 information or events.
Western Digital, WD, the HGST logo, SanDisk and G-Technology 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160818005254/en/
Bob Blair
Western Digital Corp. Investor Relations
949.672.7834
robert.blair@wdc.com
or
Jim
Pascoe
Western Digital Corp. Media
408.717.5950
jim.pascoe@wdc.com
Source: Western Digital Corporation
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