Seagate Technology begins cash tender offer for 7.75% notes, 6.8% notes

By Susanna Moon

Chicago, May 16 - Seagate Technology plc said wholly owned subsidiary Seagate HDD Cayman began a cash tender offer to purchase up to $250 million principal amount of two series of its outstanding notes.

The company will purchase the following notes for a total purchase price per $1,000 principal amount of notes, listed in order of priority acceptance level:

• $672,115,000 of 7.75% senior notes due 2018 at a price of $1,137.50 per $1,000 of notes; and

• $600 million of 6.8% senior notes due 2016 at $1,162.50 per $1,000 of notes.

The total purchase price includes a $30 early tender premium for notes tendered by 5 p.m. ET on May 30.

The tender offer will expire at 11:59 p.m. ET on June 13.

Holders who tender their notes after the early date will receive the total payout less the early premium.

The company also will pay accrued interest to but excluding the settlement date.

Tendered notes may be withdrawn by the early tender date.

The company expects to use proceeds from an offer of up to $1 billion principal amount of senior notes and cash on hand to purchase the outstanding notes, according to a company press release.

Morgan Stanley (800 624-1808 or collect 212 761-1057) is the dealer manager. Global Bondholder Services Corp. (866 470-4300 or collect 212 430-3774) is the depositary and information agent.

Seagate is a Scotts Valley, Calif.-based hard disk drive and data storage products company.

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