Western Digital to redeem $109.5M in convertible notes due 2028

Western Digital Corporation (Nasdaq: WDC) announced it will redeem all $109,505,000 in aggregate principal amount of its 3.00% Convertible Senior Notes due 2028, with a redemption date of November 16, 2026.

The notes will be redeemed at 100% of the principal amount, plus any accrued and unpaid interest up to, but excluding, the redemption date. After that date, interest on the notes will cease to accrue, and no notes will remain outstanding upon completion of the redemption.

Holders may convert their notes at any time through November 12, 2026, the second scheduled trading day before the redemption date. The conversion rate is 26.5231 shares of Western Digital common stock per $1,000 principal amount of notes. Western Digital said it expects holders of substantially all notes to convert before the redemption date, though holders are not obligated to do so.

Western Digital has elected a cash percentage of 0%, meaning it will pay cash for up to the principal amount of converted notes and settle any remaining conversion obligation in shares of common stock. Settlement will be based on the sum of daily settlement amounts over 40 consecutive trading days during the relevant observation period.

The company previously entered into capped call transactions with certain counterparties in connection with the issuance of the notes. No settlement or modification to those transactions is anticipated in connection with this redemption.

U.S. Bank Trust Company, National Association, is serving as trustee, paying agent, and conversion agent under the indenture governing the notes.

You May Also Be Interested In

• Dynex Capital prices $120M preferred stock offering at 9.375%
• Domo sells assets to Progress Software, renames itself Huckleberry.ai
• Shell receives $840M from Gulf of America platform stake sale