WESTERN DIGITAL CORP (WDC): debt financing — Western Digital posts Q2 loss, revenue down 36% YoY; secures $875M loan facility

WESTERN DIGITAL CORP

2023-Q2 EPS reported -$1.32 revenue$6,843,000,000

Q2 FY2023 revenue $3.11B (-36% YoY); GAAP EPS -$1.40, Non-GAAP EPS -$0.42.
Cloud revenue $1.22B (-33% QoQ, -36% YoY); hard drive inventory digestion cited.
Q3 revenue guidance $2.60B-$2.80B; Non-GAAP EPS guidance -$1.70 to -$1.40.
Q3 guidance includes $250M underutilization charges (flash wafer starts cut 30%).
Entered $875M 364-day delayed draw term loan facility (JPMorgan agent) to boost liquidity.

item 1.01 item 2.02 item 2.03 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

WESTERN DIGITAL CORP incurred term loan of $875.0 million with J.P. Morgan Chase Bank, N.A., as administrative agent at Adjusted Term SOFR Rate plus an applicable margin varying from 1.750% to 2.625% maturing the earlier of (i) 364 days following the draw date and (ii) 91 days prior to maturity of the 2024 Convertible Notes.

Instrument: term loan
Principal: $875.0 million
Counterparty: J.P. Morgan Chase Bank, N.A., as administrative agent
Rate: Adjusted Term SOFR Rate plus an applicable margin varying from 1.750% to 2.625%
Maturity: the earlier of (i) 364 days following the draw date and (ii) 91 days prior to maturity of the 2024 Convertible Notes
Event: incurrence

Exact text from the filing

On January 25, 2023, Western Digital Corporation, a Delaware corporation (the “Company”), entered into a loan agreement (the “Loan Agreement”) among the Company, each lender party thereto, J.P. Morgan Chase Bank, N.A., as administrative agent, and the other parties thereto. The Loan Agreement provides for, among other things, a new 364-day delayed draw term loan facility (“Delayed Draw Term Loan Facility” and the loans thereunder, the “Delayed Draw Term Loans”) in an aggregate principal amount of up to $875.0 million.

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Earnings Releases SEC 8-K Item 2.02 confidence 1.0

WESTERN DIGITAL CORP reported fiscal third quarter of 2023 results: revenue $2.60 billion to $2.80 billion, EPS $(1.70) to $(1.40). Guidance initiated.

Period: fiscal third quarter of 2023
Revenue: $2.60 billion to $2.80 billion
EPS: $(1.70) to $(1.40)
Guidance: initiated
Result: guidance update

Exact text from the filing

• Expect fiscal third quarter 2023 revenue to be in the range of $2.60 billion to $2.80 billion. • Expect Non-GAAP EPS in the range of $(1.70) to $(1.40)

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Earnings Releases SEC 8-K Item 2.02 confidence 1.0

WESTERN DIGITAL CORP reported fiscal second quarter ended December 30, 2022 results: revenue $3.11 billion, net income $(446), EPS $(1.40).

Period: fiscal second quarter ended December 30, 2022
Revenue: $3.11 billion
Net income: $(446)
EPS: $(1.40)
Result: reported results

Exact text from the filing

by specific reference in such filing. --- EX-99.1 (EX-99.1) --- Western Digital Reports Fiscal Second Quarter 2023 Financial Results News Summary • Second quarter revenue was $3.11 billion, at the high end of the guidance range. • Second quarter GAAP earnings per share (EPS) was $(1.40) and Non-GAAP EPS was $(0.42), which includes $100 million of underutilization

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

WESTERN DIGITAL CORP entered into Loan Agreement with J.P. Morgan Chase Bank, N.A., as administrative agent, and the lenders party thereto valued at up to $875.0 million (effective 2023-01-25).

Action: entry
Agreement: credit facility
Counterparty: J.P. Morgan Chase Bank, N.A., as administrative agent, and the lenders party thereto
Value: up to $875.0 million
Effective: 2023-01-25

Exact text from the filing

On January 25, 2023, Western Digital Corporation, a Delaware corporation (the “Company”), entered into a loan agreement (the “Loan Agreement”) among the Company, each lender party thereto, J.P. Morgan Chase Bank, N.A., as administrative agent, and the other parties thereto. The Loan Agreement provides for, among other things, a new 364-day delayed draw term loan facility (“Delayed Draw Term Loan Facility” and the loans thereunder, the “Delayed Draw Term Loans”) in an aggregate principal amount of up to $875.0 million.

View on SEC.gov

26 debt financings filed in the last 30 days. Browse all debt financings →

WESTERN DIGITAL CORP filing history →

Source: SEC EDGAR

accession 0000106040-23-000006

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