Western Digital Calls 3.00% Convertible Senior Notes Due 2028 for Full Redemption

Summary of Event

On September 14, 2026, Western Digital Corporation issued a formal redemption notice calling all of its remaining $109,505,000 aggregate principal amount of 3.00% Convertible Senior Notes due 2028 for redemption on November 16, 2026.

---

Key Terms & Mechanics

1. Redemption Terms:

   • Redemption Price: 100% of the principal amount, plus accrued and unpaid interest to (but excluding) November 16, 2026.
   • Interest Payment: Regular interest payable on the November 15, 2026 payment date will be paid separately to holders of record.
   • Result: Following completion of the redemption, zero Notes will remain outstanding.

2. Conversion Option for Noteholders:

   • Deadline: Surrender for conversion is permitted until 5:00 p.m. New York City time on November 12, 2026 (two scheduled trading days prior to the Redemption Date).
   • Conversion Rate: 26.5231 shares of Common Stock per $1,000 principal amount.
   • Settlement Election: The company elected a cash percentage of 0% on net share settlement. Consequently, Western Digital will pay cash up to the $1,000 principal amount per note and deliver shares of Common Stock for any excess conversion value, calculated over a 40-trading-day observation period.

3. Capped Call Transactions:

   • Western Digital previously entered into capped call transactions related to the Notes. The company confirmed that no settlement or modification to these capped call transactions is anticipated.

---

Market & Financial Impact

• Expectation: The company expects substantially all noteholders to exercise their conversion rights prior to the redemption date.
• Capital Structure: Cleans up the balance sheet by extinguishing the remaining $109.5M convertible debt tranche.
• Cash & Dilution: Will require cash outlay to cover the principal ($109.5M) and potential issuance of common shares for conversion values exceeding the principal.