Seagate offers $1.3 billion of exchangeable senior notes due 2028

Chicago, Sept. 6 – Seagate HDD Cayman announced a new offering for up to $1.3 billion of exchangeable senior notes due 2028 in a late-day press release on Wednesday.

There will be a $200 million 13-day over-allotment option.

The notes will be guaranteed by Seagate Technology Holdings plc and Seagate Technology Unlimited Co.

The notes will be exchangeable under certain circumstances at the option of the holders into cash up to the aggregate principal amount of notes to be exchanged, and cash, ordinary shares of Seagate (Nasdaq: STX), or a combination of both, at Seagate’s election, in respect of any remainder of the company’s conversion obligation in excess of such principal amount.

The company and Seagate expect to enter into privately negotiated capped call transactions with one or more of the initial purchasers, affiliates or other financial institutions that have the same maturity date of the notes.

Proceeds will be used to repay existing debt, including portions of the company’s outstanding term loans and/or senior notes, and for other general corporate purposes. Other general corporate purposes may include repaying other outstanding debt, capital expenditures and other investments in the business.

Distribution will be via Rule 144A.

Seagate is a Dublin, Ireland-based data storage company.

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