Western Digital $3 billion term loan B prices at Libor plus 375 bps

By Sara Rosenberg

New York, Aug. 15 – Western Digital Corp. recently wrapped syndication of its $3 billion covenant-light term loan B (//BBB-) due April 2023 at Libor plus 375 basis points, versus initial talk of Libor plus 400 bps to 425 bps, according to a market source.

The term loan has a 0.75% Libor floor and was issued at par.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to reprice the company’s existing term loan B from Libor plus 550 bps with a 0.75% Libor floor, and existing lenders are getting paid down at 101 due to current call protection terms.

The existing term loan B is sized at $3.75 billion but the company is paying down the debt to $3 billion with cash on hand.

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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