Edition:
United States

Western Digital In Connection With Settlement With Toshiba, Enters Into A 6 Year Facility Agreement


Tuesday, 12 Dec 2017 05:23pm EST 

Dec 12 (Reuters) - Toshiba Corp <6502.T>::WESTERN DIGITAL CORP - ENTERED INTO SETTLEMENT AGREEMENT WITH BAIN CAPITAL & CERTAIN OTHER AGREEMENTS WITH TMC RELATED TO OPERATION OF JOINT VENTURES.WESTERN DIGITAL CORP - IN CONNECTION WITH SETTLEMENT WITH TOSHIBA, ON DEC 12, WESTERN DIGITAL ENTERED INTO A Y6 FACILITY AGREEMENT.WESTERN DIGITAL CORP SAYS TMC OWNS AND IS FUNDING CONSTRUCTION OF FAB 6 - SEC FILING.WESTERN DIGITAL CORP - UNDER Y6 FACILITY AGREEMENT, CO IS COMMITTED TO FUND 50% OF FAB 6'S START-UP COSTS, AS WELL AS 50% OF JV'S PORTION OF PHASE II.WESTERN DIGITAL CORP - CO REQUIRED UNDER Y6 FACILITY AGREEMENT TO PREPAY ABOUT $60 MILLION IN JAN 2018 TOWARD FAB 6 BUILDING DEPRECIATION.WESTERN DIGITAL -UNDER Y6 AGREEMENT, CO’S SHARE OF INITIAL COMMITMENT SEEN TO BE ABOUT $950 MILLION; COSTS TO BE INCURRED PRIMARILY THROUGH 2018.WESTERN DIGITAL- CO EXPECTS TO FUND PORTION OF INITIAL COMMITMENT, BUILDING DEPRECIATION PREPAYMENT WITH CASH ON HAND, THROUGH OTHER FINANCING SOURCES.WESTERN DIGITAL -WITH Y6 FACILITY AGREEMENT, CO, SANDISK AND TMC ALSO AGREED TO EXTEND THEIR JOINT RESEARCH AND DEVELOPMENT ACTIVITIES AT YOKKAICHI FACILITY TO FAB 6.