Seagate Technology gets $1.3 billion five-year revolving facility

By Marisa Wong

Morgantown, W.Va., Feb. 20 – Seagate Technology plc entered into a credit agreement on Wednesday for a $1.3 billion senior unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Merrill Lynch, Pierce, Fenner & Smith, Inc., BNP Paribas Securities Corp., Morgan Stanley Senior Funding, Inc., MUFG Bank, Ltd. and Wells Fargo Bank, NA are bookrunners with Bank of Nova Scotia as administrative agent, Bank of America, NA, Morgan Stanley Senior Funding and BNP Paribas Securities as syndication agents and MUFG Bank and Wells Fargo Bank as documentation agents.

Seagate may borrow from the facility at any time until the earlier of Feb. 20, 2024 and the date commitments are terminated.

The credit agreement also allows the borrower to increase the facility by up to $300 million total, provided that there is no default, the increase is at least $25 million and the existing commitments under the facility receive 0.5% most favored nation protection.

Up to $75 million of the facility will be available for the issuance of letters of credit, and up to $50 million will be available for swingline loans.

Loans will bear interest at Libor plus a variable margin based on the company’s corporate credit rating. Exact pricing was not disclosed in the filing.

The credit agreement requires the company to meet an interest coverage ratio and a leverage ratio and maintain a minimum liquidity amount.

Seagate is a data storage company based in Dublin with operational headquarters in Cupertino, Calif.

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