Seagate expected to price $1 billion two-part notes on Thursday

By Paul A. Harris

Portland, Ore., Dec. 2 – Seagate Technology plc plans to take part in a Zoom roadshow on Wednesday and Thursday presenting its $1 billion two-part offering of senior notes (Ba1/BB+/BB+), according to market sources.

The deal is coming in tranches of notes due July 15, 2029, callable after three years at par plus 50% of the coupon, with initial talk in the high 3% area to 4%, and notes due July 15, 2031, callable after five years at par plus 50% of the coupon, with initial talk in the low 4% area.

An investor call was scheduled to begin at noon ET on Wednesday.

The Rule 144A and Regulation S with registration rights offering is expected to price on Thursday.

Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. BofA Securities Inc., MUFG, Scotia Capital (USA) Inc., Wells Fargo Securities LLC, KKR and BNP Paribas Securities Corp. are the joint bookrunners.

DBS, ICBC Standard Bank plc, Mizuho Securities USA Inc., OCBC, RAM, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The issuing entity will be Seagate HDD Cayman, a subsidiary of Seagate Technology.

The Cupertino, Calif.-based data storage company plans to use the proceeds to repurchase ordinary shares and for general corporate purposes, which may include debt repayment, capital expenditures and other investments in the business.

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