Friday, March 24, 2017

Western Digital Announces Successful Repricing of €881 Million of Euro Term B Loans

Western Digital Corporation 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.