CUPERTINO, Calif.--(BUSINESS WIRE)--
Seagate Technology plc (NASDAQ: STX) announced that it has increased the
size of its previously announced offering of $500 million aggregate
principal amount of senior notes due 2025 (the “Notes”) to $1 billion.
The Notes were priced at 100% of the aggregate principal amount and will
bear interest at a rate of 4.75% per annum. The Notes will be issued by
Seagate 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 28, 2014, subject to customary
Seagate estimates that the net proceeds from the offering will be
approximately $987 million after deducting underwriting discounts and
estimated offering expenses.
Seagate intends to use the net proceeds from the offering of the Notes
for general corporate purposes, which may include, but are not limited
to, the retirement of a portion of its outstanding indebtedness
(including pursuant to the tender offers previously announced by
Seagate), capital expenditures and other investments in the business.
Seagate is a world leader in hard disk drives and storage solutions.
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.
Brian Ziel, 408-658-1540
Source: Seagate Technology