Deals
Western Digital Said to Boost Terms for Year's Biggest Junk Deal
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Western Digital Corp. is sweetening terms for the largest junk-bond offering of the year to win investor support for a debt sale to finance the company’s takeover of SanDisk Corp., according to people with knowledge of the matter.
A $4.1 billion unsecured bond is now being offered with a yield of about 10.5 percent, after being initially marketed at about 9 percent, the people said, asking not to be identified as the information isn’t public. That would be a premium of more than 4.5 percentage points over the average for similarly-rated debt, Bank of America Merrill Lynch index data show. In addition, a $1.5 billion secured bond is now being offered with a yield of about 7.5 percent, up from 6 percent last week, the people said.