TLDR
- Western Digital plans to redeem its entire outstanding balance of $109.5 million in 3.00% Convertible Senior Notes maturing in 2028 on November 16, 2026.
- Redemption will occur at full face value plus accumulated interest through the redemption date.
- Bondholders can elect to convert their holdings at 26.5231 shares per $1,000 of principal through November 12, 2026.
- Cash will cover the principal value of conversions, while amounts exceeding principal will be paid in shares.
- Shares of WDC declined 2.98% to $447.18 following the announcement.
On September 14, 2026, Western Digital (WDC) revealed its intention to retire the complete outstanding amount of $109.5 million in 3.00% Convertible Senior Notes scheduled to mature in 2028. The company set November 16, 2026, as the official redemption date.
Western Digital Corporation, WDC
Shares closed at $447.18 when the announcement was made public, representing a 2.98% decrease for the trading session.
The redemption terms specify full face value payment at 100% of principal. Additionally, the company will include any interest that has accumulated and remains unpaid through the day before redemption.
Bondholders seeking to exchange their notes for equity have a designated conversion period. The window opens September 14 and closes at 5:00 p.m. Eastern Time on November 12, 2026.
Each $1,000 of principal value converts at a predetermined rate of 26.5231 common shares of Western Digital. The redemption process includes no additional share adjustments.
Company executives anticipate that the majority of bondholders will opt for conversion ahead of the redemption deadline. However, conversion remains entirely voluntary.
Those selecting conversion will receive settlement distributed across 40 consecutive trading days throughout the designated observation period. Any partial share amounts will be paid in cash.
Western Digital’s Conversion Settlement Method
Management selected a 0% cash percentage for handling conversions. Under this framework, Western Digital will distribute cash equal to the principal balance of converted notes. Any value surpassing the principal threshold will be paid out in common shares.
This arrangement enables the company to decrease outstanding debt while preserving operational cash reserves. The equity dilution from new share issuance represents the offsetting cost.
The company previously established capped call arrangements with select financial counterparties when these notes were initially sold. Management indicated these derivative contracts will remain unaffected by the current redemption plan.
Analyst Outlook
Current analyst consensus rates WDC stock as a Buy, accompanied by a $740.00 price objective. This target significantly exceeds the trading level reached on announcement day.
U.S. Bank Trust Company, National Association, serves as the trustee, paying agent, and conversion agent under the governing indenture for these notes.
After-hours trading saw WDC shares fall to $418.96, marking an additional 6.31% drop beyond the regular session close.
The post Western Digital (WDC) Stock Slides 3% Following $109.5M Convertible Note Redemption Plan appeared first on Blockonomi.
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