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Western Digital gets $875 million 364-day delayed-draw term loan
By Wendy Van Sickle
Columbus, Ohio, Jan. 31 – Western Digital Corp. entered into a loan agreement on Jan. 25 that provides for a new 364-day delayed-draw term loan facility in a principal amount up to $875 million that is available to be drawn in a single tranche until June 30, 2023, according to an 8-K filed with the Securities and Exchange Commission.
The loan will be payable 364 days from the date the loans are drawn or on the date that is 91 days prior to the date of the maturity of the company’s 2024 convertible notes if any of the notes are outstanding on that date and the company does not have liquidity of at least $1 billion plus the principal amount of the convertibles outstanding.
The delayed-draw loans do not require scheduled principal amortization prior to maturity.
The loans bear interest at the adjusted term SOFR rate plus an applicable margin ranging from 175 basis points to 262.5 bps, based on the corporate family ratings of the company from at least two ratings agencies. There is also an unused commitment fee of 20 bps.
JPMorgan Chase Bank, NA is administrative agent and a joint bookrunner and lead arranger along with KeyBank Capital Markets Inc., U.S. Bank NA, RBC Capital Markets, Truist Securities, Inc., TD Securities (USA) LLC, BNP Paribas Securities Corp., Bank of the West and DBS Bank Ltd.
Western Digital must maintain a maximum total leverage ratio.
KeyBank NA, U.S. Bank NA and Royal Bank of Canada are the syndication agents.
Truist Bank, Toronto-Dominion Bank, New York Branch, DBS Bank Ltd., BNP Paribas and Bank of the West are the documentation agents. Citibank, NA, Bank of America, NA and HSBC Bank USA, NA are the co-documentation agents.
Western Digital is an Irvine, Calif.-based developer and manufacturer of storage solutions that enable people to create, manage, experience and preserve digital content.
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