Western Digital sets roadshow for $5.5 billion in secured and unsecured bonds

By Paul A. Harris

Portland, Ore., March 18 – Western Digital Corp. plans to start a roadshow on Monday for $5.5 billion of bonds in two tranches, according to market sources.

The deal features a $1.5 billion tranche of split-rated seven-year senior secured notes (Ba1/BBB-/BBB-) as well as a $4.1 billion tranche of straight speculative-grade eight-year senior unsecured notes (Ba2/BB+/BB+).

The secured tranche comes with initial guidance in the low 6% context. The unsecured tranche has initial guidance in the low 9% context.

The roadshow wraps up on March 28 and the Rule 144A and Regulation S deal is expected to price on March 29.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and HSBC are the joint bookrunners.

The notes in both tranches come with three years of call protection.

The Irvine, Calif.-based digital storage solutions company plans to use the proceeds to help fund the acquisition of SanDisk Corp. and to refinance existing debt at both companies.

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