WD Announces Successful Repricing of $3B Term B Loans and Prepayment of $750 Million Term B Loans

[HardOCP News]

Western Digital Corporation today announced that it has successfully priced $3.0 billion of new U.S. dollar-denominated term B loans at an interest rate of LIBOR + 3.75%, which priced 175 basis points lower than its previous term B loans issued earlier this year in connection with the company's acquisition of SanDisk Corporation. In connection with this transaction, Western Digital settled the previous U.S. dollar-denominated term B loans with the proceeds of this new loan and a voluntary cash prepayment of $750 million. The new financing is expected to generate annual interest savings of approximately $128 million beginning on Aug. 17, 2016. This reflects annual cash interest savings of approximately $100 million resulting from both the 175 basis point reduction in interest spread and the $750 million reduction in principal as well as annual non-cash interest savings of approximately $28 million from reduced amortization of debt issuance costs associated with the previous term B loans. The new term loans have the same remaining tenor as the previous U.S. dollar-denominated term B loans and mature on April 29, 2023.