Connect with us

Company News

Kioxia lenders to refinance $13.5 billion for Western Digital deal

Kioxia Holdings’s lenders are planning to refinance 2 trillion yen ($13.5 billion) in loans to support its potential merger with Western Digital’s flash memory business, Bloomberg News reported on Wednesday.

Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group intend to submit a commitment letter for the refinancing next month, Bloomberg reported citing unnamed sources.

Part of the loan will be used to pay special dividends to Kioxia’s shareholders, Bloomberg said.

Under the terms of the deal being negotiated, Western Digital will hold about 50.5% of the combined company with the remaining 49.5% held by Kioxia, Bloomberg reported, adding that Western Digital’s hard drive business is not expected to be part of the deal.

Kioxia said the information in the report is not something the company has announced and declined to comment. SMFG, Mizuho and MUFG declined to comment.

Of the 2 trillion yen loan, 400 billion yen will likely be funded through loan commitments and the Development Bank of Japan will provide a loan of 300 billion yen. The rest will likely be equally split between the three megabanks, Bloomberg reported.

Kioxia and Western Digital are speeding up merger talks and nailing down a deal structure, Reuters reported in May, amid a slump in the market for flash memory. Reuters

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2023 Communications Today

error: Content is protected !!