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This excerpt taken from the WDC 10-K filed Aug 28, 2007. Line of
Credit
The Company maintained a $125 million credit facility
(“Senior Credit Facility”) with a termination date of
September 20, 2009. The facility provided for a revolving
credit line (subject to outstanding letters of credit and a
borrowing base calculation) and a term loan. The term loan was
paid in full as of March 30, 2007, a letter of termination
was submitted for the Senior Credit Facility on June 28th,
2007, and termination was finalized during the first quarter of
2008.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. Line of
Credit
The Company has a $125 million credit facility
(“Senior Credit Facility”) consisting of a revolving
credit line (subject to outstanding letters of credit and a
borrowing base calculation) and a term loan. Both the revolving
credit facility and the term loan mature on September 20,
2009 and are secured by the Company’s accounts receivable,
inventory, 65% of its stock in its foreign subsidiaries and
other assets. For the year ended June 30, 2006, the Company
had no borrowings on the revolving credit line and the average
variable rate on the Company’s term loan was 6.5%. The term
loan requires quarterly principal payments of approximately
$3 million. Principal payments made on the term loan
increase the amount of revolving credit available. At
June 30, 2006, the Company had $97.5 million available
for borrowing under the revolving credit line, $25 million
outstanding on the term loan, and $2.5 million in
outstanding letters of credit.
Table of Contents
WESTERN
DIGITAL CORPORATION
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
The Senior Credit Facility prohibits the payment of cash
dividends on common stock and contains specific financial
covenants. The Company is required to maintain an available
liquidity level of $300 million at the end of each quarter.
Available liquidity is defined as cash plus eligible trade
receivables. Should the Company’s available liquidity be
less than $300 million, the Company would then be subject
to minimum EBITDA (earnings before interest, taxes, depreciation
and amortization) requirements and capital expenditure
limitations. As of June 30, 2006, the Company was in
compliance with all covenants.
The terms of the Senior Credit Facility require that the Company
deliver to the lenders audited financial statements within
90 days of the end of each fiscal year. As a result of the
independent investigation into the Company’s stock option
accounting that was conducted under the direction of the Special
Committee, the Company was delayed in completing its fiscal year
2006 audited financial statements, this Annual Report on
Form 10-K,
and its Quarterly Report on
Form 10-Q
as of and for the period ending September 29, 2006. At the
Company’s request, the lenders under the Senior Credit
Facility agreed that the Company would not be in default under
the Senior Credit Facility as a result of its failure to timely
deliver its 2006 audited financial statements, or the management
discussion and analysis for its Quarterly Report on
Form 10-Q
as of and for the period ending September 29, 2006,
provided that the lenders receive the 2006 audited financial
statements, the management discussion and analysis for its
Quarterly Report on
Form 10-Q
as of and for the period ending September 29, 2006, and all
other documents reasonably requested by the lenders before the
earlier of: (a) 30 days following the filing of this
Annual Report on
Form 10-K
or (b) January 12, 2007. The Company intends to
deliver its audited financial statements to the lenders on or
around the date of filing this Annual Report on
Form 10-K.
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