Western Digital Redeems $47 Million of Debentures

Western Digital Corp. said it has completed redemption of $47 million of its 6.75% convertible subordinated debentures, issuing about 2.7 million shares of common stock at a $17.50 conversion price to the debenture holders.

The Irvine computer parts maker now has 25.6 million shares of common stock outstanding, said Bob L. Corey, director of corporate accounting. Western Digital stock closed at $24.625 on the American Stock Exchange Monday, the exchange date, giving debenture holders a $7.13-per-share discount.

Western Digital officials said in March that the company would redeem the notes, originally scheduled to expire in 2011, in order to erase the $47 million debt from the company’s books.

Although $1,000 in principal amount of debentures was redeemable for $1,090.94, including accrued interest, most holders of the notes chose to convert them to stock, with only $10,000 worth of the bonds redeemed in cash, Corey said.