Western Digital (WDC)

 

Borrowings under the Credit Facility bear interest at a rate equal to, at the option of WDTI, either (a) a LIBOR rate determined by reference to the cost of funds for Eurodollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs (the “Eurocurrency Rate”) or (b) a base rate determined by reference to the higher of (i) the federal funds rate plus 0.50% and (ii) the prime rate as announced by JPMorgan Chase Bank, N.A. (the “Base Rate”), in each case plus an applicable margin. The applicable margin for borrowings under the term loan facility ranges from 1.25% to 1.50% with respect to borrowings at the Eurocurrency Rate and 0.0% to 0.125% with respect to borrowings at the Base Rate. The applicable margin for revolving loan borrowings under the revolving credit facility ranges from 0.8% to 1.125% with respect to borrowings at the Eurocurrency Rate and 0.0% to 0.125% with respect to borrowings at the Base Rate. The applicable margins for borrowings under the Credit Facility are determined based upon a leverage ratio of the Company and its subsidiaries calculated on a consolidated basis. If either the base rate or LIBOR rate increase, our interest payments would also increase. A one percent increase in the variable rate of interest on the Credit Facility would increase interest expense by approximately $5 million annually.

 

 

Borrowings under the Credit Facility bear interest at a rate
equal to, at the option of WDTI, either (a) a LIBOR rate
determined by reference to the cost of funds for Eurodollar
deposits for the interest period relevant to such borrowing,
adjusted for certain additional costs (the “Eurocurrency
Rate”) or (b) a base rate determined by reference to
the higher of (i) the federal funds rate plus 0.50% and
(ii) the prime rate as announced by JPMorgan Chase Bank,
N.A. (the “Base Rate”), in each case plus an
applicable margin. The applicable margin for borrowings under
the term loan facility ranges from 1.25% to 1.50% with respect
to borrowings at the Eurocurrency Rate and 0.0% to 0.125% with
respect to borrowings at the Base Rate. The applicable margin
for revolving loan borrowings under the revolving credit
facility ranges from 0.8% to 1.125% with respect to borrowings
at the Eurocurrency Rate and 0.0% to 0.125% with respect to
borrowings at the Base Rate. The applicable margins for
borrowings under the Credit Facility are determined based upon a
leverage ratio of the Company and its subsidiaries calculated on
a consolidated basis. If either the base rate or LIBOR rate
increase, our interest payments would also increase. A one
percent increase in the variable rate of interest on the Credit
Facility would increase interest expense by approximately
$5 million annually.

 

 

We maintained a $125 million credit facility (“Senior Credit Facility”) with a termination date of September 20, 2009. 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 28^th, 2007, and termination was finalized during the first quarter of 2008.

 

At our option, borrowings under the Senior Credit Facility would bear interest at either LIBOR (with option periods of one to three months) or a base rate, plus a margin. If LIBOR or the base rate increases, our interest payments would also increase. At June 30, 2006, we had a $25 million term loan outstanding under the Senior Credit Facility. A one percent increase in the variable rate of interest on the Senior Credit Facility would increase interest expense by approximately $0.2 million annually.