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Corporate Bond Issuance and Trading. As a member of the BofA/Merrill Lynch corpo- 100
rate bond origination team, you are working on an upcoming transaction on behalf of Western
Digital Corp. (Nasdaq: WDC) which is planning a massive high-yield bond o↵ering to fund

the acquisition of SanDisk Corp. (Nasdaq: SNDK). As the senior financial analyst on the

deal, you are in charge of all the fixed-income analysis and report directly to the lead banker.
A lot is on the line for your company because this deal might become the largest high-yield
bond o↵ering in 2016.

Here is recent press coverage of the announcement of the bond o↵ering:

Western Digital Readies $5.6B Bond O↵ering Backing SanDisk Buy7 year us

Western Digital this morning launched o↵ the shadow calendar its SanDisk acquisition bond
financing, comprising $1.5 billion of seven-year (non-call three) secured notes and $4.1 billion
of eight-year (non-call three) senior notes, according to sources. Roadshows are scheduled
to run Monday, March 21 through Monday, March 28, with pricing to follow via a Bank of
America–led bookrunner team, the sources added.

While first call premiums have not been outlined for the two series, take note that while par
plus 75% coupon to balance the short schedule is most typical, an issuer-friendly arrangement