Seagate trades $964.42 million notes for $750 million new notes

By Wendy Van Sickle

Columbus, Ohio, Nov. 30 – Seagate HDD Cayman, a subsidiary of Seagate Technology Holdings plc, issued about $750 million principal amount of new 9 5/8% senior notes due Dec. 1, 2032 to settle its exchange offers for four series of outstanding debt securities, according to an 8-K filing with the Securities and Exchange Commission.

The exchange offer was announced on Nov. 15, and the company initially planned to exchange the existing notes up to only $500 million of new notes, with a minimum issuance size set at $300 million.

Holders tendered at total of $1,309,731,000 out of a total of $2 billion of outstanding notes across all four series by the early deadline of the offer, 5 p.m. ET on Nov. 28, also the withdrawal deadline, the company reported in a news release Wednesday.

The total amount of notes accepted for exchange was $964,418,000.

Seagate said it received and accepted the following tenders by the early deadline, listed in order of acceptance priority level and with the total early exchange consideration per $1,000 principal amount:

• $422,908,000 principal amount tendered and accepted of the $500 million outstanding 3 3/8% senior notes due 2031 (Cusip: 81180WBE0) for $765 of new notes;

• $336,651,000 principal amount tendered and accepted of the $500 million outstanding 3 1/8% senior notes due 2029 (Cusip: 81180WBF7) for $780 of new notes;

• $320,847,000 principal amount tendered and $204,859,000 accepted of the $500 million outstanding 4 1/8% senior notes due 2031 (Cusip: 81180WBD2) for $800 of new notes; and

• $229,325,000 principal amount tendered and none accepted of the $500 million outstanding 4.091% senior notes due 2029 (Cusip: 81180WBC4) for $840 of new notes.

The total early exchange consideration includes an early exchange premium of $50 of new notes per $1,000 of existing notes tendered as of the early exchange date.

Early settlement occurred Nov. 30. The company also paid accrued interest to but excluding the settlement date.

Because the maximum amount of new notes has been issued to settle the early tenders, the company does not expect to accept any tenders submitted after the early deadline.

Each exchange offer will officially expire at 11:59 p.m. ET on Dec. 12.

The offer was open only to holders who are qualified institutional buyers under Rule 144A or persons other than a U.S. person under Rule 902 of the Securities Act.

Global Bondholder Services Corp. (855 654-2014 or 212 430-3774 for banks and brokers; https://gbsc-usa.com/eligibility/seagate) was the exchange agent.

Seagate is a Cupertino, Calif.-based data storage company.

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