Seagate Technology Offers $500 Million Of Senior Unsecured Notes
29 April 2010 Source: www.seagate.com
Seagate Technology (NASDAQ: STX) today announced that it intends, subject to market and other conditions, to offer $500 million aggregate principal amount of senior notes due 2020 (the "Notes") in a private placement. The Notes are expected to be issued by Seagate HDD Cayman, an indirect wholly-owned subsidiary of Seagate Technology, and guaranteed by Seagate Technology or, following the completion of its pending redomiciliation, Seagate Technology plc on a full and unconditional basis.
In connection with the offering of the Notes, Seagate terminated its $350 million senior secured corporate credit facility (the "Senior Credit Facility") as of April 29, 2010. The offering of the Notes and the termination of the Senior Credit Facility are part of Seagate's efforts to optimize its sources of liquidity.
Seagate intends to use the net proceeds from the offering of the Notes for the redemption, repayment or repurchase of a portion of its outstanding indebtedness and for general corporate purposes.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes nor shall there be any sale of the Notes in any state in which such offer, solicitation or sale would be unlawful. The Notes to be offered have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.