By Aleesia Forni
Virginia Beach, May 11 – Seagate HDD Cayman, an indirect wholly owned subsidiary of Seagate Technology plc, sold an upsized $700 million offering of 4.875% 12-year senior notes (Baa3/BBB-/BBB-) on Monday at Treasuries plus 265 basis points, according to an informed source.
The notes were upsized from a planned $400 million.
The notes sold at the tight end of the Treasuries plus 270 bps area guidance. Talk was set in the area of 287.5 bps over Treasuries.
Pricing was at 99.718 to yield 4.906%.
Morgan Stanley & Co. LLC was the active bookrunner and BofA Merrill Lynch was the passive bookrunner for the Rule 144A and Regulation S deal.
The Cupertino, Calif.-based computer hard drive manufacturer plans to use the proceeds for general corporate purposes, including the redemption of its 6.875% notes due 2020, capital expenditures and other investments in the business.
| Issuer: | Seagate HDD Cayman
|
| Guarantor: | Seagate Technology plc
|
| Amount: | $700 million, upsized from $400 million
|
| Description: | Senior notes
|
| Maturity: | June 1, 2027
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch
|
| Coupon: | 4.875%
|
| Price: | 99.718
|
| Yield: | 4.906%
|
| Spread: | 265 bps over Treasuries
|
| Trade date: | May 11
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price guidance: | 270 bps area over Treasuries, tightened from 287.5 bps area
|
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