Western Digital up to $1.25 billion term loan to be led by Goldman

By Sara Rosenberg

New York, June 29 - Western Digital Corp.'s proposed up to $1.25 billion senior secured term loan will be led by Goldman Sachs, according to a DFAN14A filed with the Securities and Exchange Commission Friday.

Proceeds will be used to help fund the acquisition of Komag Inc. for $32.25 in cash per share, with the value of the transaction about $1 billion.

The transaction will be structured as a cash tender offer for all the outstanding shares of Komag common stock, followed by a merger of a wholly owned subsidiary of Western Digital into Komag, in which the remaining shareholders of Komag will receive $32.25 in cash.

In connection with the deal, Komag is expected to retire its convertible notes due 2014.

The acquisition is expected to close in the third quarter, subject to customary closing conditions, including regulatory approvals.

Western Digital is a Lake Forest, Calif., designer, developer, manufacturer and seller of hard disk drives. Komag is a San Jose, Calif., supplier of thin-film disks, the primary high-capacity storage medium for digital data.

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