Seagate amends credit agreement for $600 million term loan A3

By Marisa Wong

Los Angeles, Aug. 19 – Seagate Technology Holdings plc and subsidiary Seagate HDD Cayman entered into an amendment and joinder on Aug. 18 to their credit agreement dated Feb. 20, 2019 with Bank of Nova Scotia as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement was amended to provide for a $600 million term loan A3, the proceeds of which may be used for general corporate purposes.

The term loan A3 was borrowed in full at closing of the amendment.

The loan is repayable in quarterly installments beginning on Dec. 31, 2022 and is scheduled to mature on July 30, 2027.

The loan bears interest at term SOFR plus a variable margin of 125 basis points to 250 bps based on the company’s corporate credit rating.

The amendment also amended the credit agreement to replace the Libor interest rate options with term SOFR interest rate options and to permit the borrower to increase the revolving loan commitments or obtain new term loans of up to $100 million in the aggregate.

The other material terms of the credit agreement remain unchanged.

Seagate is a Cupertino, Calif.-based data storage company.

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