Seagate unit gives early tender results for 7% notes 6 7/8% notes

By Jennifer Chiou

New York, June 4 - Seagate Technology plc indirect wholly owned subsidiary Seagate HDD Cayman announced the early tender results of its offer for up to an aggregate $300 million principal amount of its 7% senior notes due 2021 and its 6 7/8% senior notes due 2020.

As of 5 p.m. ET on June 3, the company received tenders for an aggregate principal amount of $277.5 million of the 7% notes and $252.4 million of the 6 7/8% notes, according to an 8-K filing with the Securities and Exchange Commission. Seagate HDD Cayman has exercised its early purchase option for the $277.5 million of 7% notes.

The tender offers for the 7% notes and the 6 7/8% notes will expire at 11:59 p.m. ET on June 17. They began on May 20.

At the end of May, the company completed its cash tender offer for any and all of its outstanding 7¾% senior notes due 2018. As previously reported, the company received and accepted tenders for $192,923,000 of those notes.

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

At the beginning of the offer, there was $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.

Participating holders of the 7¾% notes had to tender their securities by the expiration time to be eligible to receive the total consideration of $1,077.93 per $1,000 principal amount.

Holders of 7% notes or 6 7/8% notes who tendered 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 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 or 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.

Seagate HDD Cayman previously said that if the total principal amount of 7% and 6 7/8% notes tendered exceeds the maximum tender amount, 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 could 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 & 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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