Seagate Technology Announces Pricing and Increased Size of Senior Unsecured Notes Offering
12 May 2015 - 10:22AM
Business Wire
Seagate Technology plc (NASDAQ:STX) announced that it has
increased the size of its previously announced offering of $400
million aggregate principal amount of senior notes due 2027 (the
“Notes.”) to $700 million. The Notes were priced at 99.718% of the
aggregate principal amount and will bear interest at a rate of
4.875% per annum. The Notes will be issued by Seagate HDD Cayman
(“HDD Cayman”), an indirect wholly owned subsidiary of Seagate
Technology plc (“Seagate”), and guaranteed by Seagate.
The Notes are being sold in a private placement to qualified
institutional buyers pursuant to Rule 144A and Regulation S under
the Securities Act of 1933, as amended (the “Securities Act”). The
sale of the Notes is expected to close on May 14, 2015, subject to
customary closing conditions.
Seagate estimates that the net proceeds from the offering will
be approximately $692 million after deducting underwriting
discounts and estimated offering expenses.
HDD Cayman intends to use the net proceeds from the offering of
the Notes for general corporate purposes, which may include, but
are not limited to, replenishing cash associated with the
redemption of the outstanding 6.875% Senior Notes due 2020, capital
expenditures and other investments in the business.
About Seagate
Seagate creates space for the human experience by innovating how
data is stored, shared and used.
Seagate, Seagate Technology and the Seagate logo are trademarks
or registered trademarks of Seagate Technology LLC in the United
States and/or other countries.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes nor shall there be any
sale of the Notes in any state in which such offer, solicitation or
sale would be unlawful. The Notes to be offered have not been and
will not be registered under the Securities Act, or applicable
state securities laws, and may not be offered or sold in the United
States absent registration or pursuant to an applicable exemption
from the registration requirements of the Securities Act of 1933
and applicable state securities laws.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, each as
amended, including, in particular, statements about the terms and
conditions of, and completion of, the offering of the Notes
described above. These statements identify prospective information
and may include words such as “expects,” “intends,” “plans,”
“anticipates,” “believes,” “estimates,” “predicts,” “projects” and
similar expressions. These forward-looking statements are based on
information available to the Company as of the date of this press
release and are based on management’s current views and
assumptions. These forward-looking statements are conditioned upon
and also involve a number of known and unknown risks,
uncertainties, and other factors that could cause actual results,
performance or events to differ materially from those anticipated
by these forward-looking statements. These forward-looking
statements should not be relied upon as representing the Company’s
views as of any subsequent date and the Company undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made.
Seagate Technology plcClive Over,
408-658-1617clive.over@seagate.com
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