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Western Digital reprices €885 million term B at Euribor plus 325 bps
By Wendy Van Sickle
Columbus, Ohio, Sept. 22 – Western Digital Corp. said it repriced its €885 million of new term B loans at Euribor plus 325 basis points, 200 bps lower than its previous euro-denominated term B loans borrowed earlier this year in connection with its acquisition of SanDisk Corp.
Western Digital settled the previous euro-denominated term B loans with the proceeds of the new financing, the company reported in a Thursday news release.
The new financing’s terms are expected to generate annual interest savings of about $23 million, including cash savings of about $20 million from the 200 bps reduction and non-cash savings of about $3 million from reduced amortization of debt issuance costs associated with the previous euro-denominated term B loans.
The company expects a debt extinguishment charge of about $37 million from the transaction to be recorded in the September 2016 quarter.
The new term loans, like the previous euro-denominated term B loans, mature on April 29, 2023.
The company noted that the new financing follows its pricing of $3 billion of new dollar-denominated term B-1 loans that, along with a voluntary prepayment of $750 million, replaced its previous dollar term B loans on Aug. 17.
In total, Western Digital said it expects annual interest savings from the two transactions to be about $151 million beginning in the September 2016 quarter. This includes annual cash interest savings of about $120 million.
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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