Western Digital Announces Redemption of 3.00% Convertible Notes Due 2028

What Happened
Western Digital Corporation announced on September 14, 2026 that it issued a Redemption Notice calling all outstanding 3.00% Convertible Senior Notes due 2028 for redemption on November 16, 2026. On the Redemption Date, any Notes not converted will be redeemed for cash at 100% of principal plus accrued and unpaid interest (excluding the interest payable for the November 15, 2026 interest payment date, which will be paid on November 16, 2026 to holders of record). After the Redemption Date, interest on the Notes will cease to accrue.

Key Details

• Redemption Date: November 16, 2026; redemption price = 100% of principal + accrued interest (excluding the Nov 15, 2026 interest payment which is paid on Nov 16 to holders of record).
• Conversion deadline: Notes may be surrendered for conversion any time prior to the close of business (5:00 p.m. New York City time) on the second scheduled trading day immediately preceding the Redemption Date.
• Current conversion rate: 26.5231 shares of common stock per $1,000 principal amount of Notes. Conversion settlement will be a mix of cash and shares under the Indenture’s observation-period settlement mechanics.
• Company election: Western Digital elected a 0% cash percentage for conversions; it expects to pay cash up to the principal amount converted and settle the remainder, if any, in shares. The company also noted no anticipated settlement or change to related capped‑call transactions entered when the Notes were issued.

Why It Matters
This action can affect both the company’s cash needs and potential share dilution. If noteholders convert before the redemption date, Western Digital will issue shares (and limited cash) under the conversion mechanics, which could increase share count. If holders do not convert, the company must pay cash equal to 100% of principal (plus certain accrued interest), which would reduce cash on hand. The company stated it expects most holders to convert, but holders are not obligated to do so.