Western Digital and Kioxia Holdings have secured 1.9 trillion yen ($12.7 billion) in financing from a group of Japanese lenders to facilitate their merger. The deal, involving an equity swap, requires refinancing of loans taken out during Kioxia’s restructuring. Japan’s top three banks and the state-backed Development Bank of Japan will provide the financing, including a 400 billion yen line of loan commitments for Kioxia’s working capital. The merged entity, anticipated to be on par with Samsung Electronics, will be registered in the U.S. with its home office in Japan, with Kioxia owning 63% of the new company based on enterprise value.
Toshiba controls 41% of Kioxia.
