Western Digital Said to Shift Mix of SanDisk Takeover Debt

Western Digital Corp. is reducing its reliance on high-yield investors in the U.S. and leaning more on banks and European buyers as it tries to raise $14.1 billion of debt to finance its purchase of SanDisk Corp., according to people with knowledge of the matter.

The hard-disk maker will now seek $5.225 billion in the bond market, down from the $5.6 billion it was initially planning to raise, said the person, who asked not to be identified as the information isn’t public. The company is also reducing a $4.2 billion term loan marketed to U.S. institutional investors to $3.75 billion.

The company will make up the difference by almost doubling a $550 million equivalent loan for European investors to $1 billion. A $3.75 billion term loan A, which is typically bought by banks, is being boosted to $4.125 billion.

The reduced bond offering is still the biggest junk-bond deal of the year, Bloomberg data show. The company is also seeking a $1 billion revolving-credit line.

Western Digital had earlier sweetened terms on the debt sale by increasing the yields on both the bond and loan portions of the offering in order win investor support.

Steve Shattuck, a spokesman for Western Digital, declined to comment.

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