Seagate to accept tenders for $426.12 million of notes due 2022, 2023

By Sarah Lizee

Olympia, Wash., July 1 – Seagate Technology plc subsidiary Seagate HDD Cayman announced the final 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 deadline, 11:59 p.m. ET on June 30, holders had tendered $248,179,000 of 4.25% notes and $177,942,000 of 4.75% notes, all of which are expected to be accepted for purchase by the company. Of those amounts, $420,000 of the 4.25% notes and $3,666,000 of the 4.75% notes were tendered after the early deadline, 5 p.m. ET on June 16.

Because the outstanding aggregate principal amount of each of the 2022 notes and the 2023 notes validly tendered after the early tender deadline and prior to the expiration date do not exceed the applicable tender cap, neither series of notes will 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.

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.

Holders who tendered their notes after the early tender deadline but on or prior to the expiration date are 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Tendered notes may no longer be withdrawn.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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