Seagate Announces Pricing of $1 Billion of Senior Unsecured Notes
May 24 2023 - 8:20PM
Business Wire
Seagate HDD Cayman (the “Company”), a subsidiary of Seagate
Technology Holdings plc (NASDAQ: STX) (“Seagate”), announced that
it priced its earlier announced offering of $500 million aggregate
principal amount of senior notes due 2029 (the “2029 Notes”) and
$500 million aggregate principal amount of senior notes due 2031
(the “2031 Notes” and, together with the 2029 Notes, the “Notes”).
The 2029 Notes were priced at 100% of the aggregate principal
amount and will bear interest at a rate of 8.25% per annum. The
2031 Notes were priced at 100% of the aggregate principal amount
and will bear interest at a rate of 8.50% per annum. The Notes will
be guaranteed by Seagate and Seagate Technology Unlimited
Company.
The Notes are being sold in a private placement to persons
reasonably believed to be qualified institutional buyers pursuant
to Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”), and in offshore transactions under Regulation S
under the Securities Act. The sale of the Notes is expected to
close on May 30, 2023, subject to customary closing conditions.
The Company intends to use the net proceeds from the offering of
the Notes to redeem in full its 4.875% Senior Notes due 2024
promptly following the offering, to repay $450.0 million in
aggregate principal amount of the term loans outstanding under its
credit agreement and for general corporate purposes, which may
include repayment of other outstanding indebtedness, capital
expenditures and other investments in the business.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the Notes, nor shall there be any
sale of the Notes in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The Notes to be offered have not been and will not be registered
under the Securities Act, or applicable state securities laws, and
may not be offered or sold in the United States absent registration
except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act and
applicable state securities laws.
About Seagate
Seagate Technology crafts the sustainable datasphere, helping to
maximize humanity’s potential by innovating world-class,
precision-engineered mass-data storage and management solutions
with a focus on deep-rooted partnerships. A global technology
leader for nearly 45 years, the company has shipped over four
billion terabytes of data capacity.
©2023 Seagate Technology LLC. All rights reserved. Seagate,
Seagate Technology, and the Spiral logo are registered trademarks
of Seagate Technology LLC in the United States and/or other
countries.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements provide current expectations of
future events based on certain assumptions and include any
statement that does not directly relate to any historical fact.
Forward-looking statements include, among other things, statements
about the terms and conditions of, and completion of, the offering
of the Notes and the use of proceeds therefrom, each as described
above. The Company cannot assure that the offering will be
consummated, nor can it guarantee the size or terms of the
offering. Forward-looking statements generally can be identified by
words such as “expects,” “intends, “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “projects,” “should,” “may,”
“will,” “will continue,” “can,” “could” or the negative of these
words, variations of these words and comparable terminology, in
each case, intended to refer to future events or circumstances.
However, the absence of these words or similar expressions does not
mean that a statement is not forward-looking. Forward-looking
statements are subject to various uncertainties and risks that
could cause the Company’s actual results to differ materially from
historical experience and the Company’s present expectations or
projections. These risks and uncertainties include, but are not
limited to, those described under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the Company’s latest periodic report on
Form 10-Q or Form 10-K filed with the U.S. Securities and Exchange
Commission. Undue reliance should not be placed on the
forward-looking statements in this press release, which are based
on information available to us on, and which speak only as of, the
date hereof. The Company undertakes no obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, unless required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230524005880/en/
Media Contact: Gregory Belloni (415) 235-9092
gregory.belloni@seagate.com
Investor Relations Contact: Shanye Hudson (510) 661-1600
shanye.hudson@seagate.com
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