WDC, NAND, NVM, enterprise storage systems, etc. Message Board

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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

SNDK 210.78

-7.1%

10:22 AM EST

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To: reddy_s who wrote (3488)	1/30/2018 12:04:54 PM
From: Art Bechhoefer	of 4828

A rate around 5% seems reasonable, particularly because the new issue is senior, not subordinated. In any event, WDC has done a good job of cutting debt service costs that were tied to the SanDisk acquisition. WDC has a long history of prudent use of bond issues. About 25 years ago, I purchased WDC convertible bonds, which were converted to stock when the stock reached a certain price. Thus, the bonds, which added to the liability side of the balance sheet when issued, turned into equity as they converted. Interest rates were much higher at that time than they have been at any time since. Holding the bonds as interest rates fell meant that when I sold the bonds, I was able to record a capital gain. Art

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