Thursday, March 1, 2018

WD Announces Closing of Credit Agreements and Debt Repayment

Western Digital 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.