Seagate Technology draws $350 million under revolver

By Jennifer Chiou

New York, Dec. 12 - Seagate Technology borrowed $350 million under its existing $500 million senior unsecured revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent.

The revolver bears interest at Libor plus 62.5 basis points. Borrowings are prepayable at any time prior to maturity without penalty.

The company added that the draw is intended to enhance Seagate's liquidity and cash position as it takes steps to rationalize its production capacity and improve its overall cost structure.

Subsequent to the borrowing, the outstanding balance of the revolver is about $400 million, including $350 million in outstanding loans and about $50 million in outstanding letters of credit.

Based in the Cayman Islands, Seagate is engaged in the design, manufacture and marketing of hard disc drives.

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