Seagate HDD Cayman wraps tender offers for 7% notes, 6 7/8% notes

By Marisa Wong

Madison, Wis., June 18 – Seagate Technology plc indirect wholly owned subsidiary Seagate HDD Cayman completed its cash tender offers to purchase up to a combined $300 million principal amount of its 7% senior notes due 2021 and its 6 7/8% senior notes due 2020. The tender offers began on May 20 and expired at 11:59 p.m. ET on June 17.

As of the expiration of the offers, the company received tenders for a total of $277.5 million of the 7% notes and $252.4 million of the 6 7/8% notes. These totals are the same as the amounts tendered as of 5 p.m. ET on June 3, the early tender date.

As previously reported, the company exercised its early purchase option and accepted for purchase the $277.5 million of 7% notes that were tendered by the early tender date.

Because the aggregate amount of notes tendered under the offers exceeded the maximum tender amount, the notes accepted for purchase were subject to proration with priority given to the 7% notes.

The company said on Wednesday that it accepted for purchase no additional 7% notes and $22.5 million of the 6 7/8% notes.

The company will pay a tender offer price of $1,058.74 for each $1,000 principal amount of 6 7/8% notes accepted for purchase plus a $30 premium for notes tendered by the early tender date, for a total consideration of $1,088.74.

Holders who tendered their 7% notes by the early tender date received $1,145 per $1,000 of notes, as previously announced. The total consideration included a $30 early tender premium.

The company will also pay accrued interest to but excluding the final settlement date, which is June 18.

At the beginning of the offer, there was $528.54 million of the 7% notes and $556.76 million of the 6 7/8% notes outstanding.

The tender offers were not conditioned on any minimum amount for any series of notes but were conditioned on completion of a notes offering in the amount of at least $800 million.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) is the dealer manager of the tender offers. Global Bondholder Services Corp. (866 470-3900) is the depositary and information agent.

Seagate is a data storage company based in Cupertino, Calif.

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