Seagate unit launches capped tender offers for notes due 2022, 2023

By Sarah Lizee

Olympia, Wash., June 3 – Seagate Technology plc subsidiary Seagate HDD Cayman began cash tender offers for up to $225 million of its $723,788,000 of 4.75% senior notes due 2023 (Cusip: 81180WAH4) and up to $275 million of its $477,435,000 of 4.25% senior notes due 2022 (Cusip: 81180WAV3), according to a press release.

The company expects to use cash on hand and proceeds from an offering of a new series of senior notes due 2031 for the tender offers.

Each offer will expire at 11:59 p.m. ET on June 30.

The total consideration for each series will be $1,077.50 per $1,000 of notes for the notes due 2023 and $1,050 per $1,000 of notes for the notes due 2022. The total consideration for each series includes an early tender premium of $50 per $1,000 of notes.

Holders must validly tender their notes at or prior to 5 p.m. ET on June 16, the early tender deadline, to be eligible to receive the early tender premium.

If holders tender their notes after the early tender deadline but on or prior to the expiration date, they will be eligible to receive the total consideration minus the early tender premium.

Holders will also receive accrued interest.

Tendered notes may be withdrawn on or prior to 5 p.m. ET on June 16.

Each tender offer is subject to the satisfaction or waiver of some conditions, including the financing condition.

Tendered notes accepted for purchase may be subject to proration.

Morgan Stanley (212 761-1057 collect, 800 624-1808 toll-free) and BofA Securities (980 387-3907 collect, 888 292-0070 toll-free) are acting as the dealer managers for the tender offers. The information agent and tender agent is Global Bondholder Services Corp. (866 470-4300 toll-free, 212 430-3774 for banks and brokers).

Seagate HDD Cayman intends to launch exchange offers for its 4.75% senior notes due 2025 and 4.875% senior notes due 2027 for new senior notes maturing in 2029, according to an 8-K filing with the Securities and Exchange Commission.

Seagate is a Cupertino, Calif.-based hard drive manufacturer.

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