Western Digital cuts outstanding convertibles to $265.9 mln

By Peter Heap

New York, Sept. 28 - Western Digital Corp. said it cut the outstanding amount of its zero-coupon convertible subordinated debentures to $256.9 million principal amount through private transactions over the last two fiscal years, a reduction of more than $1 billion of principal amount.

The market value of the debentures still outstanding is $85.1 million and the book value $112.5 million, the Lake Forest, Calif. hard drive maker said in a filing with the Securities and Exchange Commission .

Western Digital sold $1.3 billion principal amount of the convertibles in 1998. They mature on Feb. 18, 2018 and are callable after Feb. 18, 2003. They have puts on Feb. 18, 2003, Feb. 18, 2008 and Feb. 18, 2013. Conversion is at 14.935 shares per $1,000 principal amount.

In the most recent fiscal year, ending June 29, 2001, Western Digital said it issued 16.0 million shares of common stock in exchange for convertibles with a book value of $120.3 million and principal amount of $295.7 million.

That followed issuance of 26.7 million shares in 2000 in exchange for convertibles with a book value of $284. million and principal amount of $735.6 million.

Extraordinary gains of $22.4 million in 2001 and $166.9 million in 2000 were recorded as a result of the redemptions.

Western Digital said the transactions were private and individually negotiated with institutional investors.

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