New Issue: Seagate prices $600 million 10.5-year senior notes at par to yield 7%

By Paul A. Harris

Portland, Ore., May 4 - Seagate HDD Cayman priced a $600 million issue of 10.5-year senior notes (Ba1/BB+/BB+) at par to yield 7% on Wednesday, according to an informed source.

The yield printed at the tight end of the 7% to 7¼% price talk.

Morgan Stanley & Co. Inc. ran the books for the quick-to-market deal.

The Scotts Valley, Calif.-based hard disk drive and data storage products company will use the proceeds for general corporate purposes, which may include debt repayment, capital expenditures and investments in its business.

Issuer:	Seagate HDD Cayman
Amount:	$600 million
Maturity:	Nov. 1, 2021
Securities:	Senior notes
Bookrunner:	Morgan Stanley & Co. Inc.
Co-managers:	Scotia Capital (USA) Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc.
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	377 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2016, then callable at 103.5, 102.333, 101.167, par on and after May 1, 2019
Equity clawback:	35% at 107.0 until May 1, 2014
Trade date:	May 4
Settlement date:	May 18
Ratings:	Moody's: Ba1
	Standard & Poor's: BB+
	Fitch: BB+
Distribution:	Rule 144A with registration rights
Price talk:	7% to 7¼%
Marketing:	Quick to market

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