Summary
This 8-K filing by Western Digital Corporation (WDC) on March 8, 2012, primarily details an amendment to a material definitive agreement and anticipates a significant upcoming event. The company amended its Commitment Letter with Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, extending the expiration date to May 7, 2012. This amendment is directly linked to the expected completion of Western Digital's acquisition of Viviti Technologies, Ltd. (formerly Hitachi Global Storage Technologies, or HGST). The acquisition is scheduled to close on March 8, 2012, the same date the company anticipates entering into a new credit facility. This new facility will be unsecured and intended, in part, to finance a portion of the HGST acquisition cost. Investors should note the strategic importance of the HGST acquisition, which, upon completion, will significantly expand Western Digital's market presence and capabilities in the storage industry. The extension of the Commitment Letter provides continued flexibility for financing arrangements related to this transformative transaction. The simultaneous execution of a new credit facility highlights the company's proactive approach to managing the financial aspects of this major acquisition.
Key Highlights
- 1Amendment to Commitment Letter extending expiration date to May 7, 2012.
- 2The amendment involves Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
- 3Expected completion of the acquisition of Viviti Technologies, Ltd. (formerly HGST) on March 8, 2012.
- 4Company expects to enter into a new unsecured credit facility on March 8, 2012.
- 5The new credit facility will be used, in part, to finance the HGST acquisition.
- 6The acquisition of HGST is a significant strategic move for Western Digital.