S&P rates Seagate notes BB+

Standard & Poor's said that it assigned a BB+ senior rating to the $600 million or 10-year notes being offered by Seagate HDD Cayman. The recovery rating is 3, indicating meaningful (50%-70%) prospects for recovery.

The rating is equal to the corporate credit rating on guarantor and parent Seagate Technology plc.

The new debt issue does not affect the BB+ corporate credit rating and stable outlook on Seagate Technology.

The company intends to use the proceeds for general corporate purposes and to support its recently announced acquisition of Samsung assets and its dividend.

Seagate will retire the $560 million of debt maturing in 2011, and as a result, overall debt levels are fundamentally unchanged as a result of this transaction, the agency said.

The pro forma adjusted debt-to-EBITDA was at 2 times as of March 31.

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