New Issue: Seagate sells upsized $600 million 10-year notes at par to yield 6 7/8%

By Paul A. Harris

St. Louis, April 29 - Seagate HDD Cayman priced an upsized $600 million issue of 10-year senior unsecured notes (Ba3/B+/) at par to yield 6 7/8% on Thursday, according to an informed source.

The yield printed at the tight end of the 6 7/8% to 7% price talk.

Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch were the joint bookrunners for the quick-to-market deal, which was upsized from $500 million.

The Scotts Valley, Calif.-based hard disk drive and storage products company will use the proceeds to take out a portion of its outstanding debt and for general corporate purposes.

Issuer:	Seagate HDD Cayman
Amount:	$600 million, increased from $500 million
Maturity:	May 1, 2020
Securities:	Senior unsecured notes
Bookrunners:	Morgan Stanley & Co. Inc., Bank of America Merrill Lynch
Co-managers:	BNP Paribas Securities Corp., Scotia Capital, Wells Fargo Securities, KeyBanc Capital Markets Inc., Needham & Co. LLC
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	312 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2015, then callable at 103.438, 102.292, 101.146, par on and after May 1, 2018
Trade date:	April 29
Settlement date:	May 13
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6 7/8% to 7%
Marketing:	Quick-to-market

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