Seagate HDD gives pricing terms for tender offers for 2022, 2023, 2025 notes

Chicago, Sept. 17 – Seagate HDD Cayman, a subsidiary of Seagate Technology plc, gave the pricing terms for its previously announced cash tender offers for up to $525 million of notes from three series.

Specifically, Seagate is offering to purchase up to $250 million of its $750 million outstanding 4.25% senior notes due 2022, up to $200 million of its $941,025,000 outstanding 4.75% senior notes due 2023 and up to $75 million of its $919,992,000 outstanding 4.75% senior notes due 2025.

Holders who have tendered at or prior to 5 p.m. ET on Sept. 16, the early tender deadline, will receive the total consideration, which includes an early tender premium of $30.00 per $1,000 principal amount.

The consideration has been calculated using a fixed spread plus the yield to maturity of the applicable U.S. Treasury security. Pricing for the 2022 notes will be based on the 1.5% U.S. Treasury due Aug. 15, 2022 and a fixed spread of 95 basis points; pricing for the 2023 notes will be based on the 1.25% U.S. Treasury due Aug. 31, 2024 and a fixed spread of 175 bps; and pricing for the 2025 notes will be based on the 1.25% U.S. Treasury due Aug. 31, 2024 and a fixed spread of 225 bps.

Total consideration for the 2022 notes will be $1,036.14 per $1,000 of notes. The reference yield was 1.716%.

Total consideration for the 2023 notes will be $1,045.56 per $1,000 of notes. The reference yield was 1.678%.

And, total consideration for the 2025 notes will be $1,038.84 per $1,000 of notes. The reference yield was 1.678%.

The company will also pay accrued interest from and including the last interest payment date up to but excluding the applicable settlement date, expected to be Sept. 18.

Note acceptance is subject to proration as the aggregate principal amount tendered exceeds the applicable tender cap.

The offer will formally expire at 11:59 p.m. ET on Sept. 30, although the company does not expect to accept any more notes for purchase.

The company expects to use cash on hand and borrowings under a new term loan to purchase tendered notes.

The company said the purpose of the offers is to reduce its refinancing risk by refinancing a portion of its outstanding notes with term debt that has a later maturity date.

BofA Securities (980 387-3907 or 888 292-0070) and Morgan Stanley (212 761-1057 or 800 624-1808) are dealer managers for the offers.

Global Bondholder Services Corp. (866 470-4300 or 212 430-3774 for banks and brokers) is the information and tender agent.

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

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