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 4 at par plus 50% coupon has become more acceptable over the past year. Beyond that, market sources relay that the equity-clawback feature on both tranches is most typical, as three-year for up to 35% of the issue, at par plus coupon, and the change-of-control call provisions are also regular-way, at 101% of par. Additional bookrunners on the long
