TLDR
- Western Digital will redeem all $109.5 million of its 3.00% Convertible Senior Notes due 2028 on November 16, 2026.
- The notes will be redeemed at 100% of principal plus any accrued interest up to the redemption date.
- Noteholders have until November 12, 2026 to convert at a rate of 26.5231 shares per $1,000 principal.
- The company will pay cash up to the principal amount on conversions, with any excess settled in common stock.
- WDC stock was down 2.98% on the day of the announcement, trading at $447.18.
Western Digital (WDC) announced on September 14, 2026 that it will redeem all $109.5 million of its outstanding 3.00% Convertible Senior Notes due 2028. The redemption is scheduled for November 16, 2026.
Western Digital Corporation, WDC
WDC stock was trading at $447.18 at the time of the announcement, down 2.98% on the day.
The notes will be redeemed at a price equal to 100% of the principal amount. That price also includes any accrued and unpaid interest up to, but not including, the redemption date.
Holders who want to convert their notes into stock have a window to do so. They can surrender their notes for conversion from September 14 up until 5:00 p.m. New York City time on November 12, 2026.
The fixed conversion rate is set at 26.5231 shares of Western Digital common stock per $1,000 principal amount of notes. No additional shares will be added in connection with the redemption.
Western Digital said it expects most noteholders will choose to convert before the redemption date. That said, holders are under no obligation to do so.
For those who do convert, the company will settle obligations over 40 consecutive trading days during the relevant observation period. Cash will be paid for any fractional share amounts.
How Western Digital Will Settle Conversions
The company elected a cash percentage of 0% for conversions. In practice, this means Western Digital will pay cash for up to the principal amount of the notes converted. Any excess value above the principal will be settled in common stock.
This structure allows the company to reduce its debt load while limiting how much cash actually leaves the business. The stock issuance component is the tradeoff.
Western Digital also had capped call transactions in place with certain counterparties when the notes were originally issued. The company confirmed no settlement or modification to those capped call transactions is expected as part of this redemption.
Analyst Outlook
The most recent analyst rating on WDC stock is a Buy, with a price target of $740.00. That represents a large premium to where the stock was trading on the day of the announcement.
U.S. Bank Trust Company, National Association, is acting as trustee, paying agent, and conversion agent under the indenture governing the notes.
WDC stock was also trading at $418.96 in extended hours, down an additional 6.31% from the regular session close.
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