Seagate Offering $700 Million of Senior Notes
Due 2027, interest rate of 4.875% per annum
This is a Press Release edited by StorageNewsletter.com on May 13, 2015 at 2:48 pmSeagate Technology plc has increased the size of its previously announced offering of $400 million aggregate principal amount of senior notes due 2027 to $700 million.
The notes were priced at 99.718% of the aggregate principal amount and will bear interest at a rate of 4.875% per annum.
The notes will be issued by Seagate HDD Cayman, an indirect wholly-owned subsidiary of Seagate Technology plc, and guaranteed by Seagate.
The notes are being sold in a private placement to qualified institutional buyers pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The sale of the notes is expected to close on May 14, 2015, subject to customary closing conditions.
Seagate estimates that the net proceeds from the offering will be approximately $692 million after deducting underwriting discounts and estimated offering expenses.
HDD Cayman intends to use the net proceeds from the offering of the notes for general corporate purposes, which may include, but are not limited to, replenishing cash associated with the redemption of the outstanding 6.875% senior notes due 2020, capital expenditures and other investments in the business.