Seagate Prices Offering Of $1.3 Bln Of Exchangeable Senior Notes

(RTTNews) - Seagate HDD Cayman, a unit of Seagate Technology Holdings Plc (STX), said on Friday that it has priced its previously announced offering of $1.3 billion aggregate principal amount of exchangeable senior notes due 2028 at an interest rate of 3.50 percent a year.

The company has granted the initial purchasers an option to purchase up to an additional $200 million aggregate principal amount of notes.

"The company intends to use approximately $1.1 billion (or approximately $1.3 billion if the initial purchasers exercise their over-allotment option in full) of the net proceeds from the notes to repay existing indebtedness, including portions of the company's outstanding term loans or senior notes. The remaining net proceeds will be used for general corporate purposes," Seagate said in a statement.

The sale of the notes is expected to be closed on September 13. The initial exchange rate for the notes is 12.1253 ordinary shares per $1,000 principal amount of notes, which is equivalent to an initial exchange price of around $82.47 per share. This represents an exchange premium of approximately 30 percent to the last reported sale price share at Nasdaq on September 7.