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Western Digital successfully syndicates $3 billion credit facility
By Sara Rosenberg
New York, Aug. 12 - Western Digital Corp. syndicated its $3 billion unsecured credit facility that will be used to help fund the acquisition of Hitachi Global Storage Technologies from Hitachi Ltd., according to a 10-K filed with the Securities and Exchange Commission on Friday.
The facility consists of a $500 million revolver and up to $2.5 billion of term loans.
By comparison, under the original commitment, the company was planning a $500 million revolver and $2 billion of term loans.
The facility has a 35 basis point commitment fee, the filing said.
Bank of America Merrill Lynch is the lead bank on the deal.
Under the agreement, Western Digital is buying Hitachi Global Storage Technologies for $3.5 billion in cash and 25 million common shares valued at $750 million.
In addition to funding the acquisition, proceeds from the new credit facility will be used to refinance existing bank debt and for working capital, capital expenditures and other corporate purposes.
Closing is expected in the company's second quarter of fiscal 2012, subject to customary conditions, including regulatory approvals. The company has received requests for additional information and is engaged in more in-depth reviews of the pending acquisition initiated by regulatory authorities in the United States, the European Union, China, Japan and Korea.
Western Digital is an Irvine, Calif.-based designer and producer of hard drives and solid state drives. Hitachi Global Storage Technologies is a San Jose, Calif.-based developer of hard disk drives, solid state drives and external storage products and services.
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