Shares of QUALCOMM, Inc. (NASDAQ:QCOM) ended Monday session in red amid volatile trading. The shares closed down -0.44 points or -0.70% at $62.31 with 6.21 million shares getting traded. Post opening the session at $62.49, the shares hit an intraday low of $61.86 and an intraday high of $62.56 and the price vacillated in this range throughout the day. The company has a market cap of $90.71 billion and the numbers of outstanding shares have been calculated to be 1.47 billion shares.
QUALCOMM, Inc. (QCOM) on September 12, 2016 announced the opening of Qualcomm Communication Technologies (Shanghai) Co. Ltd., a semiconductor test facility in the Waigaoqiao (WGQ) free-trade zone in Shanghai, and its first foray into providing manufacturing services for semiconductors. By working with Amkor Technology, Inc., one of the world’s leading providers of contract semiconductor assembly and test services, the new company will combine Amkor’s extensive test services experience and state of the art cleanroom facilities with Qualcomm Technologies’ industry leadership in cutting-edge product engineering and development.
The new manufacturing facility demonstrates Qualcomm Technologies’ commitment to continue to invest and help develop semiconductor expertise in China, and is indicative of growth in semiconductor market leadership in the country. Through the ownership and operation of a semiconductor test center, Qualcomm Technologies will enhance its focus on customer service, continue to develop its expertise in operational excellence, and increase its business presence in China.
“The test facility is part of our continued mission to streamline supply chain operations and improve operational efficiency,” said Roawen Chen, senior vice president, QCT global operations, Qualcomm Technologies, Inc.
“Qualcomm Technologies continually strives to improve our manufacturing footprint in China and the formation of Qualcomm Communication Technologies in Shanghai is another example of this dedication,” said Frank Meng, chairman, Qualcomm China.
Shares of Western Digital Corp (NASDAQ:WDC) ended Monday session in green amid volatile trading. The shares closed up +1.08 points or 1.93% at $57.01 with 5.90 million shares getting traded. Post opening the session at $55.60, the shares hit an intraday low of $55.50 and an intraday high of $57.70 and the price vacillated in this range throughout the day. The company has a market cap of $16.21 billion and the numbers of outstanding shares have been calculated to be 284.96 million shares.
Western Digital Corp (WDC) on September 23, 2016 announced that it has successfully repriced €885 million of new Euro-denominated term B loans at an interest rate of Euribor + 3.25%, which priced 200 basis points lower than its previous Euro-denominated term B loans borrowed earlier this year in connection with the company’s acquisition of SanDisk Corporation. In connection with this transaction, Western Digital settled the previous Euro-denominated term B loans with the proceeds of this new financing. The terms of the new financing are expected to generate total annual interest savings of approximately $23 million beginning on Sept. 22, 2016. This reflects annual cash interest savings of approximately $20 million resulting from the 200 basis point reduction in interest spread as well as annual non-cash interest savings of approximately $3 million from reduced amortization of debt issuance costs associated with the previous Euro-denominated term B loans. The company expects to incur a debt extinguishment charge of approximately $37 million as a result of this transaction, which will be recorded in the September 2016 quarter. The new term loans have the same remaining tenor as the previous Euro-denominated term B loans and mature on April 29, 2023.
The new financing follows the company’s successful pricing of $3.0 billion of new USD Term B-1 loans that, along with a voluntary prepayment of $750 million, replaced its previous USD Term B loans on Aug. 17, 2016. In combination with financing, the aggregate annual interest savings that the two transactions are expected to generate is approximately $151 million beginning in the September 2016 quarter. This reflects annual cash interest savings of approximately $120 million.