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.
Copyright Business Wire 2015