Western Digital enters $900M convertible preferred equity investment by Apollo

Western Digital "announced that funds managed by affiliates of Apollo Global Management, Inc. led the purchase of $900 million of convertible preferred stock of Western Digital, along with Elliott Investment Management L.P. who also invested in the convertible offering. The investment strengthens Western Digital’s financial position and flexibility as the company continues its review of strategic alternatives aimed at further optimizing long-term value for its shareholders. The preferred stock has an initial conversion price of $47.75 per share of Western Digital’s stock, subject to customary anti-dilution and other adjustments. The initial conversion price of $47.75 represents a 25% premium to the volume-weighted average closing price of the common stock over the 20-day period ending on January 30, 2023, and a 44% premium to the closing price on January 4, 2023, the last trading day prior to merger rumors involving Western Digital. The preferred stock will bear a cumulative and compounding dividend at a rate of 6.25% per annum over the initial liquidation preference of $1,000.00, until the seven-year anniversary of the closing, at which time the dividend shall increase to 7.25% per annum until the ten-year anniversary of the closing, at which time the dividend shall increase to 8.25% per annum."