S&P assigns BB to Seagate notes

S&P said it assigned BB issue and 3 recovery ratings to Seagate Technology Holdings plc’s planned up to $1 billion of unsecured notes. The notes will be due in 2029 and 2031. Seagate Technology's subsidiary Seagate HDD Cayman will be the borrower, and Seagate Technology and Seagate Technology Unlimited Co. will be guarantors.

The rating is the same as that on Seagate’s outstanding senior unsecured notes.

Seagate will use the proceeds to redeem the $500 million outstanding of notes due 2024 and repay $450 million of term loan principal. On Friday, Seagate amended its credit agreement to temporarily loosen financial covenants, which the agency said it believes gives an adequate cushion. It intends to repay $540 million of notes due June 2023 with proceeds from a sale-leaseback and balance sheet cash.

The outlook is stable.

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