Seagate Technology Announces Offering of $1.25 Billion of Senior Unsecured Notes and Intention to Enter into New $500 Million Credit Facility

Seagate Technology Announces Offering of $1.25 Billion of Senior Unsecured Notes and Intention to Enter into New $500 Million Credit Facility

Seagate Technology (NYSE: STX) today announced that it intends to offer, subject to market and other conditions, three series of debt securities for an aggregate principal amount of $1.25 billion. Seagate expects the $1.25 billion senior unsecured notes will be comprised of three-year floating rate notes, and five- and ten-year fixed rate notes. The notes are expected to be issued by Seagate Technology HDD Holdings, a direct wholly-owned subsidiary of Seagate Technology, and guaranteed by Seagate Technology on a full and unconditional basis. Seagate intends to use the net proceeds from the offering to redeem the $400 million principal amount of its 8% Senior Notes due 2009, to fund a portion of its previously announced $2.5 billion stock repurchase program and for general corporate purposes.

Morgan Stanley, JPMorgan and Goldman, Sachs & Co. are acting as joint book-running managers of the offering. Seagate also announced today that it intends to enter into an amended and restated unsecured revolving credit facility providing for borrowings of up to $500 million with a five-year maturity. Seagate may use borrowings under this facility from time to time to fund, among other things, additional share repurchases under the program described above.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering of securities may be made only by means of a prospectus.

Read the complete Press Release