Seagate talks $1.25 billion three-part note offering

By Paul A. Harris

St. Louis, Sept. 14 - Seagate Technology HDD Holdings (Cayman) talked its $1.25 billion three-part offering of senior unsecured notes (Ba1/BB+) on Thursday, according to a market source.

The Scotts Valley, Calif., computer hard drive manufacturer talked its three-year floating-rate tranche at the Libor plus 87 basis points area.

Meanwhile Seagate talked its five-year fixed-rate notes at the Treasuries plus 175 basis points area and its10-year fixed-rate notes at the Treasuries plus 212.5 basis points area.

The notes in all three tranches will be non-callable.

Pricing is expected on Friday.

Morgan Stanley, JP Morgan and Goldman Sachs & Co. are joint bookrunners for the offering, which has been registered with the Securities and Exchange Commission. BNP Paribas, KeyBanc Capital Markets, Lehman Brothers, Needham & Co., Scotia Capital, Thomas Weisel Partners and Wachovia Securities are co-managers.

Proceeds will be used to call all of the company's 8% notes due 2009 and for general corporate purposes.

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