By Abigail W. Adams
Portland, Me., May 24 – Seagate HDD Cayman priced a $500 million tranche of 8¼% senior notes due Dec. 15, 2029 and a $500 million tranche of 8½% senior notes due July 15, 2031 (Ba3/BB/BB+) at par on Wednesday, according to a market source.
Pricing of the long six-year notes came at the tight end of talk for a yield in the 8 3/8% area; early guidance was in the 8½% area.
The eight-year notes priced at the tight end of talk for a yield in the 8 5/8% area; early guidance was in the 8¾% area.
Both tranches are non-callable for three years. They both carry an equity clawback of up to 40% and a 101 poison put.
Morgan Stanley & Co. LLC (lead left), MUFG Securities Americas Inc., BofA Securities Inc., Scotia Capital (USA) Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp. and DBS Bank Ltd. were the dealers for the Rule 144A and Regulation S offering.
Proceeds will be used to refinance the company’s 4 7/8% senior notes due 2024 and to repay $450 million of its term loan.
The notes are guaranteed by Seagate Technology Holdings plc and Seagate Technology Unlimited Co.
Seagate is a Dublin, Ireland-based data storage company.
| Issuer: | Seagate HDD Cayman
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| Guarantors: | Seagate Technology Holdings plc and Seagate Technology Unlimited Co.
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| Amount: | $1 billion
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| Issue: | Senior notes
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| Lead bookrunner: | Morgan Stanley & Co. LLC
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| Joint bookrunners: | MUFG Securities Americas Inc., BofA Securities Inc., Scotia Capital (USA) Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp. and DBS Bank Ltd.
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| Trade date: | May 24
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| Settlement date: | May 30
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| Ratings: | Moody’s: Ba3
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| S&P: BB
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Investor call
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| 2029 notes
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| Amount: | $500 million
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| Maturity: | Dec. 15, 2029
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| Coupon: | 8¼%
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| Price: | Par
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| Yield: | 8¼%
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| Spread: | 444 bps
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| First call: | July 15, 2026 at 104.125
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| Equity clawback: | Up to 40% at 108.25
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| Price talk: | 8 3/8% area
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| 2031 notes
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| Amount: | $500 million
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| Maturity: | July 15, 2031
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| Coupon: | 8½%
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| Price: | Par
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| Yield: | 8½%
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| Spread: | 479 bps
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| First call: | July 15, 2026 at 104.25
|
| Equity clawback: | Up to 40% at 108.5
|
| Price talk: | 8 5/8% area
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