Seagate gets $350 million amended and restated credit facility

By Sara Rosenberg

New York, April 6 - Seagate Technology closed on a $350 million amended and restated credit facility due Sept. 19, 2011, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan and Morgan Stanley acted as the joint lead arrangers and bookrunners on the deal that was completed on April 3, with JPMorgan the administrative agent, Morgan Stanley the syndication agent, and BNP Paribas, Keybank, Wachovia Bank and the Bank of Nova Scotia the documentation agents.

Pricing on the facility is Libor plus 350 basis points.

The facility replaces the company's previous $500 million bank deal.

The purpose of getting the amended and restated facility was to increase flexibility in meeting covenants.

Under the revised agreement, the maximum permitted net leverage ratio was increased to 1.80 times for the quarter ending July 3, 2.65 times for the quarter ending Oct. 2 and 1.80 times for the quarter ending Jan. 1, 2010.

In addition, the amended and restated deal provides covenant relief for the quarters ending July 3, Oct. 2 and Jan. 1, 2010 under the net minimum liquidity requirement. The net minimum liquidity requirement in the form of cash, cash equivalents and short-term investments will be $600 million, which includes any cash drawn under the revolver.

After the quarter ending Jan. 1, 2010, the maximum permitted net leverage and minimum liquidity requirements will return to the levels that were required under the previous credit agreement.

Seagate is a Cayman Islands-based designer, manufacturer and marketer of disk drives and storage devices.

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