TLDR
- Western Digital plans to retire the entire $109.5 million balance of its 3.00% Convertible Senior Notes scheduled to mature in 2028, with redemption occurring November 16, 2026.
- Redemption price is set at full principal value along with accumulated unpaid interest through the redemption date.
- Investors holding notes can opt for conversion until November 12, 2026, receiving 26.5231 shares for every $1,000 of principal value.
- Western Digital will deliver cash payments for principal amounts upon conversion, while any remaining value will be distributed as common shares.
- Shares of WDC declined 2.98% following the disclosure, settling at $447.18 per share.
On September 14, 2026, Western Digital (WDC) revealed plans to call back the full outstanding balance of $109.5 million in 3.00% Convertible Senior Notes originally set to mature in 2028. The company has targeted November 16, 2026 as the official redemption date.
Western Digital Corporation, WDC
At the time of disclosure, WDC shares were changing hands at $447.18, reflecting a 2.98% decline for the trading session.
The redemption will execute at par value, meaning 100% of the principal balance. This figure also encompasses any interest that has accrued but remains unpaid through the day before the redemption occurs.
Noteholders interested in converting their holdings into equity have a specific timeframe available. Conversion requests can be submitted starting September 14 and must be received no later than 5:00 p.m. Eastern Time on November 12, 2026.
The predetermined conversion ratio stands at 26.5231 shares of Western Digital common stock for each $1,000 of note principal. No supplementary shares will be issued in relation to this early redemption event.
The company anticipates that a majority of noteholders will opt to convert their positions ahead of the scheduled redemption. However, conversion remains entirely voluntary.
Western Digital will fulfill conversion obligations throughout a 40-day consecutive trading period during the applicable observation window. Any fractional shares will be paid out in cash.
Western Digital’s Conversion Settlement Approach
The company designated a 0% cash percentage for handling conversions. Under this arrangement, Western Digital will provide cash payments covering up to the full principal value of converted notes. Any valuation exceeding the principal threshold will be delivered as newly issued common stock.
This methodology enables the company to decrease outstanding debt obligations while preserving cash reserves on its balance sheet. The equity issuance serves as the corresponding offset.
Western Digital had previously established capped call agreements with select financial institutions when these notes were first brought to market. Management indicated that no adjustments or settlements related to these capped call arrangements are anticipated in conjunction with the current redemption.
Wall Street Perspective
Current analyst consensus on WDC stock stands at Buy, accompanied by a price objective of $740.00. This target price indicates substantial upside potential relative to the stock’s trading level on announcement day.
U.S. Bank Trust Company, National Association, has been designated to serve as trustee, paying agent, and conversion agent according to the indenture that governs these notes.
During after-hours trading, WDC stock continued its downward movement, trading at $418.96, which marked an additional 6.31% decrease from the regular session closing price.
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