Western Digital plans proposed $5.2bn bond issuance to finance deal

U.S-based computer hardware manufacturer Western Digital Corp. announced its planned issuance of $5.2bn worth of bonds. Proceeds from the issuance would primarily be utilized for the acquisition of SanDisk Corp., strengthen the company’s balance sheet and repay debt.

The company intends to offer $1.875bn senior secured notes due 2023 paying 7.375 % and $3.35bn unsecured senior notes due 2024 paying a coupon of 10.50%.

The offer is likely to close around 13 April 2016, subject to certain customary conditions.

The proposed merger between the two companies moved a step ahead after more than 90% shareholders of both the companies voted in favor of the deal on 15 March 2016.

According to Bloomberg, Western Digital had asked lenders this week for a proposed $18bn leveraged loan issuance to finance its acquisition of SanDisk, with banks showing interest.

Source: Nasdaq

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s