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Western Digital to pay put on 0% convertibles due 2018 in cash
Nashville, Jan. 17 - Western Digital Corp. announced Friday that holders of the 0% convertible subordinated debentures due 2018 issued by its subsidiary, Western Digital Technologies Inc., have the right to surrender their debentures for purchase as of Friday.
Under the debentures terms, Western Digital Technologies has the option to pay the put in cash and/or Western Digital common stock.
Western Digital Technologies has elected to pay for the debentures solely with cash on-hand.
Under the terms of the debentures, each holder has the right to require Western Digital Technologies to redeem on Feb. 18 all or a part of the debentures at a price equal to the issue price plus the accrued original issue discount.
As of Feb. 18, the price to be paid by Western Digital Technologies for debentures validly surrendered and not withdrawn will be $459.64 per $1,000 principal amount at maturity.
If all outstanding debentures are surrendered for purchase, the aggregate cash purchase price will be about $74 million. At the end of fiscal first quarter ending Sept. 27, Western Digital had $244.4 million in cash on its balance sheet.
The right to surrender debentures for purchase expires at 5 p.m. ET on Tuesday, Feb. 18.
To surrender debentures, a purchase notice must generally be delivered to U.S. Bank, NA, the paying agent for the redemption. Holders of debentures complying with the transmittal procedures of the Depository Trust Co. need not submit a physical purchase notice to U.S. Bank.
Holders may withdraw any debentures previously surrendered for purchase at any time prior to the expiration date.
As of Thursday, there was $160.9 million in principal amount at maturity of debentures outstanding. As of Friday, the conversion ratio was 14.935 shares per note.
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