Seagate unit launches tender offers for 7¾%, 7%, 6 7/8% notes

By Marisa Wong

Madison, Wis., May 20 - Seagate Technology plc announced that indirect wholly owned subsidiary Seagate HDD Cayman began cash tender offers to purchase any and all of its outstanding 7¾% senior notes due 2018 and up to an aggregate $300 million principal amount of its 7% senior notes due 2021 and its 6 7/8% senior notes due 2020.

Currently, there is $237,419,000 of the 7¾% notes, $528.54 million of the 7% notes and $556.76 million of the 6 7/8% notes outstanding.

The any and all tender offer for the 7¾% notes will expire at 5 p.m. ET on May 27.

Holders must tender their notes by the expiration time to be eligible to receive the total consideration of $1,077.93 per $1,000 principal amount.

The tender offers for the 7% notes and the 6 7/8% notes will expire at 11:59 p.m. ET on June 17.

Holders of 7% notes and 6 7/8% notes who tender their notes at or before 5 p.m. ET on June 3, the early tender date, will receive the total consideration, which includes a $30.00 early tender premium for each $1,000 principal amount of notes accepted for purchase. The total consideration for each $1,000 of 7% notes is $1,145.00, and the total consideration for each $1,000 of 6 7/8% notes is $1,088.74.

Holders who tender their 7% notes and 6 7/8% notes after the early tender date but before the expiration time will receive the tender offer consideration, which is the total consideration less the early tender premium. The tender offer consideration per $1,000 of notes is $1,115.00 for the 7% notes and $1,058.74 for the 6 7/8% notes.

In addition, holders tendering notes under any of the offers and whose notes are accepted for purchase will receive accrued interest to, but not including, the payment date.

HDD Cayman said that if the total principal amount of 7% and 6 7/8% notes tendered exceeds the maximum tender amount, then the notes will be accepted with priority given to the 7% notes. To the extent any amount remains after the issuer purchases the tendered 7% notes, the balance will then be applied to purchase the tendered 6 7/8% notes, subject to proration.

Tendered 7¾% notes may be withdrawn at any time at or prior to the expiration date of the any and all offer. Tenders under the other two tender offers may be withdrawn at any time at or prior to 5 p.m. ET on June 3.

The tender offers are not conditioned on any minimum amount for any series of notes. However, the tender offers for the 7% and 6 7/8% notes are conditioned on completion of a notes offering in the amount of at least $800 million.

Morgan Stanley (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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