Western Digital has successfully repriced €881 million ($952 million) of new Euro-denominated term B-2 loans at an interest rate of Euribor + 2.00%, which priced 125 basis points lower than its previous Euro-denominated term B-1 loans issued in September 2016.

The interest rate margin on the new loans is subject to an additional 25 basis point step-down following any quarter during which the company’s total leverage ratio is less than 1.75:1.00. This new financing marks the company’s second successful repricing of Euro-denominated term B loans since issuing its original Euro-denominated term B loans in connection with its acquisition of SanDisk in May 2016.

In connection with this transaction, Western Digital settled the previous Euro-denominated term B-1 loans with the proceeds of this new loan. The new financing is expected to generate annual cash interest savings of approximately $12 million beginning on March 23, 2017, resulting from the 125 basis point reduction in interest spread. The new term loans have the same remaining tenor as the previous Euro-denominated term B-1 loans and mature on April 29, 2023.

The new financing follows the company’s successful pricing last week of approximately $3 billion of new term B-2 loans that replaced its previous U.S. dollar term B-1 loans. In combination with today’s financing, the aggregate annual cash interest savings that the two transactions are expected to generate is approximately $42 million beginning in the fourth quarter of fiscal 2017.

According to a related 8-K filing, JPMorgan served as administrative agent for the transaction. Merrill Lynch, Pierce, Fenner & Smith, J.P. Morgan Securities, Credit Suisse Securities, RBC Capital Markets, Mizuho Bank, The Bank of Tokyo-Mitsubishi UFJ and HSBC Securities will act as joint lead arrangers and joint bookrunners, Merrill Lynch, J.P. Morgan, CS Securities, RBCCM, Mizuho, Bank of Tokyo and HSBC will act as co-syndication agents, and Fifth Third Bank, Standard Chartered Bank and SunTrust Robinson Humphrey, will act as managing agents, in each case, for the Euro term B-2 facility.

San Jose, CA-based Western Digital is a provider of storage technologies and solutions that enable people to create, leverage, experience and preserve data.