WESTERN DIGITAL COMPLETES AGREEMENTS WITH BANK GROUP
WESTERN DIGITAL COMPLETES AGREEMENTS WITH BANK GROUP IRVINE, Calif., Nov. 7 /PRNewswire/ -- Western Digital Corp.
(NYSE: WDC) announced today that it has completed the restructuring of its bank debt and accounts receivable facilities. Under two separate agreements totaling $205.8 million, $163.3 million of outstanding bank borrowings have been consolidated into a single, collateralized syndicated revolving credit agreement involving 13 banks for a term through July 1, 1993, while the company's accounts receivable facility with a single bank has been extended for a comparable term. Forty-two and a half million dollars are currently outstanding under the accounts receivable facility.
Roger Johnson, chairman, president and chief executive officer of Western Digital stated, "The completion of the financial restructuring represents a major step forward in the company's recovery plan. We are pleased and appreciative of the solid support we are receiving from our banks during these very challenging times." The revolving credit agreement agented by Bank of America incorporates three interest rate pricing options which are equivalent to nominal interest ranges of 7 1/2 to 9 1/4 percent in today's interest rate environment. This agreement will be collateralized by most company domestic assets and a portion of the stock of each of the company's foreign subsidiaries. The two agreements require a reduction in the aggregate commitments of $25 million prior to maturity with the initial reduction of $5 million due on April 1, 1992. Compensation under the two agreements includes the granting of five-year market priced warrants covering approximately 1.7 million shares of the company's common stock, with a guarantee that the warrants will reach a minimum value of $3 million by June 1, 1993. The company may "buy back" up to two-thirds of the warrants based upon an accelerated reduction of the bank facilities. Estimated costs associated with the issuance of these warrants and other costs associated with implementing the debt restructuring were included in the $15.5 million pretax restructuring charge the company reported for the fourth fiscal quarter ended June 30, 1991. The company also announced that it was filing its Annual Report on Form 10-K with the Securities and Exchange Commission and that copies of the document will be mailed to shareholders of record. The company's annual meeting of shareholders will take place on Tuesday, Dec. 3, 1991, in Irvine. Western Digital Corp., headquartered in Irvine, is a multinational company that designs and manufactures semiconductor, subsystem and intelligent drive products for OEMs and resellers which serve the microcomputer industry. The company's storage, video and systems logic products are designed to work in concert, and the resulting Interarchiteture products yield increased system functionality and performance. -0- 11/7/91 /CONTACT: Robert J. Blair of Western Digital, 714-932-7834/ (WDC) CO: Western Digital Corp. ST: California IN: CPR SU: SE-EH -- LA002 -- 2037 11/07/91 08:41 EST
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|Date:||Nov 7, 1991|
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