| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for Western Digital Corp. > News item |
Commitments due Friday on Western Digital’s $5.1 billion bridge loan
By Paul A. Harris
Portland, Ore., March 3 – Commitments are due on Friday for Western Digital Corp.’s $5.1 billion high-yield bridge loan, according to a market source.
A syndication effort, being led by Bank of America Merrill Lynch, has been underway, the source added.
The loan includes a secured tranche, which is capped at 8¾%, and an unsecured tranche capped at 11%.
The bridge is expected to be converted into bonds in the near to intermediate future, the source said.
However there are 75 basis point step-ups on April 18. The rates would step up by an additional 50 bps should the bridge remain in place in July, the source added.
The bridge is part of the financing backing Western Digital’s acquisition of SanDisk Corp. and the refinancing of debt at both companies.
As reported, SanDisk is being acquired for $86.50 per share or a total equity value of about $19 billion.
The financing also includes a $3 billion term loan A, a $1 billion ABL facility and a $6 billion second-lien term loan B.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are the leads on the debt.
Western Digital is an Irvine, Calif.-based developer and manufacturer of storage solutions. SanDisk is a Milpitas, Calif.-based provider of flash storage solutions.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.