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WDC > SEC Filings for WDC > Form 8-K on 9-Jan-2014All Recent SEC Filings

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Form 8-K for WESTERN DIGITAL CORP


9-Jan-2014

Entry into a Material Definitive Agreement, Termination of a Material Defini


Item 1.01 Entry into a Material Definitive Agreement.

On January 9, 2014 (the "Closing Date"), Western Digital Corporation (the "Company"), Western Digital Technologies, Inc., a wholly owned subsidiary of the Company ("WDT"), and Western Digital Ireland, Ltd., an indirect wholly owned subsidiary of the Company ("WDI"), entered into a Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the "Credit Facility").

The Credit Facility provides for $4.0 billion of unsecured loan facilities consisting of a $2.5 billion term loan facility to WDT and a $1.5 billion revolving credit facility to WDT and WDI (WDT and WDI are hereinafter referred to as the "Borrowers"). The revolving credit facility includes a $100 million sublimit for letters of credit and a $50 million sublimit for swing line loans. Subject to certain conditions, a Borrower may elect to expand the credit facilities by, or obtain incremental term loans of, up to $1.0 billion if existing or new lenders provide additional term or revolving commitments. The loans under the Credit Facility have a five year term. Beginning in March 2014, WDT is required under the term loan facility to make regularly scheduled payments of principal in quarterly amortized installments.

The obligations of the Borrowers under the Credit Facility are guarantied by the Company and the Company's material domestic subsidiaries, and the obligations of WDI under the Credit Facility are also guarantied by WDT.

Borrowings under the Credit Facility bear interest at a rate equal to, at the option of the applicable Borrower, either (a) a customary London interbank offered rate (a "Eurodollar Rate") or (b) a customary base rate (a "Base Rate"), in each case plus an applicable margin. The applicable margins range from 1.25% to 2.00% with respect to Eurodollar Rate borrowings and 0.25% to 1.00% with respect to Base Rate borrowings. The Borrowers are also required to pay a commitment fee for the unused portion of the revolving credit facility, which ranges from 0.175% to 0.300% per annum. The applicable margins for borrowings and the commitment fee ranges are determined based upon a leverage ratio of the Company and its subsidiaries calculated on a consolidated basis.

The Credit Facility requires the Company to comply with a leverage ratio and an interest coverage ratio calculated on a consolidated basis for the Company and its subsidiaries. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company's and its subsidiaries' ability to incur liens, incur indebtedness, make certain restricted payments, merge or consolidate and enter into certain speculative hedging arrangements, and customary events of default.

The foregoing description of the Credit Facility does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Credit Facility, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.




Item 1.02 Termination of a Material Definitive Agreement.

On the Closing Date, concurrent with entering into the Credit Facility, the existing credit agreement, dated as of March 8, 2012, by and among Company, WDT, WDI, Bank of America, N.A., as administrative agent, and the lenders party thereto, terminated.



Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information included in Item 1.01 of this report is incorporated by reference into this Item 2.03.



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.                                  Description

10.1              Credit Agreement, dated as of January 9, 2014, among Western
                  Digital Technologies, Inc. and Western Digital Ireland, Ltd., as
                  borrowers, Western Digital Corporation, JPMorgan Chase Bank,
                  N.A., as administrative agent, and the other lenders party
                  thereto from time to time.


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