Western Digital Announces Repricing of $2.455 Billion of USD Term B Loans

Western Digital Corp. 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% 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.