Seagate gives early results of tender offers for notes due 2022, 2023

By Sarah Lizee

Olympia, Wash., June 17 – Seagate Technology plc subsidiary Seagate HDD Cayman announced the early results of its cash tender offers for up to $225 million of its $723,788,000 of 4.75% senior notes due 2023 (Cusip: 81180WAH4) and up to $275 million of its $477,435,000 of 4.25% senior notes due 2022 (Cusip: 81180WAV3), according to a press release.

By the early tender date, 5 p.m. ET on June 16, holders had tendered $247,759,000 of 4.25% notes and $174,276,000 of 4.75% notes, all of which have been accepted for purchase by the company.

The notes that have been accepted for purchase so far will not be subject to proration, though any notes tendered after the early tender date may be subject to proration.

As previously reported, the company expects to use cash on hand and proceeds from an offering of a new series of senior notes due 2031 for the tender offers.

Each offer will expire at 11:59 p.m. ET on June 30.

The total consideration for each series will be $1,077.50 per $1,000 of notes for the notes due 2023 and $1,050 per $1,000 of notes for the notes due 2022. The total consideration for each series includes an early tender premium of $50 per $1,000 of notes.

Holders had to validly tender their notes at or prior to the early tender deadline to be eligible to receive the early tender premium.

If holders tender their notes after the early tender deadline but on or prior to the expiration date, they will be eligible to receive the total consideration minus the early tender premium.

Holders will also receive accrued interest.

Tendered notes may no longer be withdrawn.

Each tender offer is subject to the satisfaction or waiver of some conditions, including the financing condition.

Morgan Stanley (212 761-1057 collect, 800 624-1808 toll-free) and BofA Securities (980 387-3907 collect, 888 292-0070 toll-free) are acting as the dealer managers for the tender offers. The information agent and tender agent is Global Bondholder Services Corp. (866 470-4300 toll-free, 212 430-3774 for banks and brokers).

Seagate HDD Cayman launched separate exchange offers for its 4.75% senior notes due 2025 and 4.875% senior notes due 2027 for new senior notes maturing in 2029, as previously reported.

Seagate is a Cupertino, Calif.-based hard drive manufacturer.

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