Summary
Western Digital Corporation (WDC) filed an 8-K report on March 2, 2018, detailing the termination of its material definitive agreements related to outstanding debt. Specifically, the company has completed the redemption of all its 7.375% senior secured notes due 2023 and has also satisfied and discharged its obligations related to its 10.500% senior unsecured notes due 2024, following a successful cash tender offer that purchased a significant principal amount of these notes. The company deposited the necessary funds, including make-whole premiums, to fully redeem these notes as of February 27, 2018 (for the 2023 Notes) and March 1, 2018 (for the 2024 Notes). This action effectively discharges Western Digital and its guarantors from all obligations under the respective indentures and releases any liens on collateral securing the 2023 Notes. This move indicates a significant deleveraging or refinancing activity by the company.
Key Highlights
- 1Western Digital has fully redeemed all outstanding 7.375% senior secured notes due 2023.
- 2The company has also satisfied and discharged all obligations related to its 10.500% senior unsecured notes due 2024.
- 3A substantial principal amount of the 2024 Notes ($2,724,957,000) was accepted in a prior cash tender offer.
- 4The redemption and discharge were completed by depositing sufficient funds, including make-whole premiums, by March 1, 2018.
- 5This action releases Western Digital from its debt obligations under the respective indentures.
- 6Liens on collateral securing the 2023 Notes have been released as a consequence of their redemption.