8-KMaterial AgreementsExhibits & Filings

WESTERN DIGITAL CORP 8-K Report, Material Agreement (Jun 10, 2016)

Filed June 10, 2016For Securities:WDC

Summary

Western Digital Corporation (WDC) filed an 8-K on June 10, 2016, to report an amendment to a material definitive agreement. Specifically, on June 9, 2016, the company and its subsidiary Western Digital Technologies, Inc. entered into Amendment No. 1 to their senior secured bridge loan agreement, originally dated May 12, 2016. This amendment primarily extends the maturity date of the $3.0 billion bridge facility from 45 days to 75 days after the original agreement date. This amendment suggests that the company is managing its short-term financing needs related to recent or upcoming activities, possibly the previously announced acquisition of SanDisk. While the extension itself doesn't inherently signal positive or negative news, it indicates a need for continued access to this credit line and provides additional flexibility in managing its cash flow during a critical period. Investors should monitor the company's ongoing financing strategies and the ultimate utilization of this bridge facility.

Key Highlights

  • 1WDC amended its $3.0 billion senior secured bridge loan agreement.
  • 2The amendment extends the maturity date of the bridge loan from 45 days to 75 days after May 12, 2016.
  • 3The amendment was entered into on June 9, 2016.
  • 4The original bridge loan agreement was dated May 12, 2016.
  • 5The amendment was made between Western Digital Corporation, Western Digital Technologies, Inc., JPMorgan Chase Bank, N.A. (as administrative agent), lenders, and other loan parties.
  • 6This filing (Item 1.01) indicates a material definitive agreement.
  • 7The attached exhibit (Exhibit 10.1) provides the full details of Amendment No. 1.

Frequently Asked Questions

This 8-K filing reports an amendment to a material definitive agreement, specifically an amendment to Western Digital's $3.0 billion senior secured bridge loan facility. The key change is the extension of the loan's maturity date.

The primary change is the extension of the maturity date of the $3.0 billion bridge loan from 45 days to 75 days after the original agreement date of May 12, 2016. This provides the company with an additional 30 days of maturity on this credit line.

Extending the maturity date typically provides the company with more financial flexibility. This could be to align with the timing of other financing activities, the closing of an acquisition (like the then-recent SanDisk deal), or to manage cash flow requirements over a slightly longer period without needing immediate repayment.

Not necessarily. Extending a bridge loan's maturity is a common financial management practice. It can be used to facilitate large transactions, manage integration periods, or simply provide more time to arrange longer-term financing. Without more context on the company's overall financial situation and the reasons for the bridge loan, it's difficult to conclude financial distress based solely on this amendment.