Summary
Western Digital Corporation (WDC) has filed an 8-K report detailing two significant events. Firstly, the company entered into a new $875.0 million delayed draw term loan facility on January 25, 2023. This facility has a 364-day term and is designed to provide financial flexibility, with provisions for its maturity tied to outstanding convertible notes. The interest rates are variable, based on SOFR or a base rate plus applicable margins, and a commitment fee applies to the unused portion. Secondly, WDC announced its financial results for the fiscal second quarter ended December 30, 2022, on January 31, 2023. While the 8-K filing incorporates the press release with these results, the financial details of the quarter are not elaborated upon within the 8-K itself, but are available in the referenced press release. Investors should review the accompanying press release for specific Q2 2023 financial performance and operational updates.
Key Highlights
- 1Western Digital entered into a new $875.0 million delayed draw term loan facility.
- 2The new loan facility has a 364-day term.
- 3The facility's maturity can be influenced by outstanding 2024 Convertible Notes.
- 4Interest rates for the new loan are variable, based on Adjusted Term SOFR or a base rate, plus applicable margins.
- 5A commitment fee of 0.200% is payable on the unused portion of the loan facility.
- 6The company announced its fiscal second quarter (ended December 30, 2022) financial results on January 31, 2023.
- 7The loan agreement includes covenants such as a maximum total leverage ratio and limits on Priority Debt.