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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Carey Thompson who wrote (8764)	2/14/1998 3:15:00 PM
From: Carey Thompson	Respond to of 11057

Just found out the new bonds are convertible to stock. The details follow. Forgive me if this has already been published on this thread. Thursday February 12, 4:39 pm Eastern Time Company Press Release SOURCE: Western Digital Corporation Western Digital Prices Offering of Convertible Subordinated Debentures IRVINE, Calif., Feb. 12 /PRNewswire/ -- Western Digital Corporation (NYSE: WDC - news) announced today the pricing of its zero coupon convertible subordinated debentures due 2018, to be sold in a private offering to certain qualified institutional investors. The debentures, priced with a yield to maturity of 5 1/4% and a 25% conversion premium, will result in gross proceeds to the Company of approximately $400 million (excluding the proceeds of any exercise of the over-allotment option). The size of the offering was increased from the previously announced $275 million in response to demand. The offering is expected to close on February 18, 1998. The Company stated that it intends to use the net proceeds of the offering for general corporate purposes, including working capital. The offered securities will not be registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities law or available exemptions from such registration requirements. Sale of the debentures is subject to market and other conditions, and there can be no assurance that any debentures will be sold or that the net proceeds of any sale will not be lower than anticipated. SOURCE: Western Digital Corporation ------------------------------------------------------------------------ More Quotes and News:Western Digital Corp (NYSE:WDC - news)Related News Categories: computer hardware, computer peripheral, computers ------------------------------------------------------------------------ Help ------------------------------------------------------------------------ Copyright c 1998 PRNewswire.

To: Carey Thompson who wrote (8764)	2/14/1998 4:24:00 PM
From: JimieA	Respond to of 11057

You said "The important thing is WDC will pay no interest on these bonds, which should help more revenue drop to the net income line -- very good for the shareholders." Even though WDC will not pay any interest, WDC will accrue interest at 5.25% which will reduce net income. Zero coupon bonds saves cash until maturity but would have no effect on the income statement.