Western Digital Announces Proposed $1.3B Convertible Notes Offering
Portfolio Pulse from Benzinga Newsdesk
Western Digital Corporation (NASDAQ:WDC) has announced a proposed offering of $1.3 billion aggregate principal amount of convertible senior notes due 2028. The notes will be senior unsecured obligations of Western Digital and will be guaranteed by each of Western Digital's wholly-owned subsidiaries. The company intends to use the net proceeds of the notes offering to pay the cost of entering into capped call transactions, to pay the purchase price for the refinancing of a portion of Western Digital's existing 1.50% convertible senior notes due 2024, and for general corporate purposes.
October 30, 2023 | 8:57 pm
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NEUTRAL IMPACT
Western Digital's proposed $1.3 billion convertible notes offering could impact the company's financial structure and liquidity. The proceeds will be used for capped call transactions, refinancing, and general corporate purposes.
The proposed offering of $1.3 billion convertible notes by Western Digital could have a neutral impact on its stock in the short term. The proceeds will be used for capped call transactions, refinancing, and general corporate purposes, which could improve the company's financial structure and liquidity. However, the impact on the stock price will depend on the market's perception of these actions and the overall market conditions.
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