Summary
Western Digital Corporation (WDC) disclosed via an 8-K filing on October 10, 2023, that its wholly-owned subsidiary, Western Digital Technologies, Inc. (WDT), has entered into a second supplemental indenture. This agreement pertains to WDT's guarantee of Western Digital Corporation's 1.50% Convertible Senior Notes due 2024. This guarantee is contingent upon WDT remaining a guarantor for the company's 4.750% Senior Notes due 2026 and adhering to the indenture's terms.
Key Highlights
- 1WDT, a WDC subsidiary, entered into a second supplemental indenture on October 10, 2023.
- 2The indenture relates to WDC's 1.50% Convertible Senior Notes due 2024.
- 3WDT will guarantee these convertible notes under specific conditions.
- 4The guarantee is linked to WDT's status as a guarantor for the 4.750% Senior Notes due 2026.
- 5This filing clarifies the guarantor status for outstanding debt instruments.
- 6The full indenture agreement is available as an exhibit to the filing.
Frequently Asked Questions
The main purpose is to formalize the guarantee by Western Digital Technologies, Inc. (WDT), a subsidiary, for Western Digital Corporation's 1.50% Convertible Senior Notes due 2024. This ensures clarity and compliance regarding the obligations associated with these notes.
WDT will guarantee the 1.50% Convertible Senior Notes due 2024 provided that WDT continues to be a guarantor under Western Digital Corporation's 4.750% Senior Notes due 2026, and as otherwise required by the terms of the indenture and the second supplemental indenture.
This filing does not indicate a new debt issuance. Instead, it clarifies and potentially strengthens the guarantee structure for existing debt, specifically the 1.50% Convertible Senior Notes due 2024, by formalizing the subsidiary's guarantee.
The link ensures that the guarantee for the convertible notes is tied to the company's broader debt obligations. If WDT were to cease being a guarantor for the 2026 Senior Notes, it could also impact its guarantee obligations for the 2024 Convertible Senior Notes, depending on the precise terms outlined in the indentures.