Summary
This 8-K filing from Seagate Technology Holdings plc, dated December 12, 2008, reports a significant event on December 10, 2008: the company drew down $350 million under its existing $500 million senior unsecured revolving credit facility. This action brings the total outstanding balance on the facility to approximately $400 million, which includes $350 million in loans and $50 million in outstanding letters of credit. The remaining undrawn commitment is approximately $100 million.
Key Highlights
- 1Seagate Technology borrowed $350 million on December 10, 2008, under its senior unsecured revolving credit facility.
- 2The total credit facility has a capacity of $500 million.
- 3Post-borrowing, the outstanding balance on the facility is approximately $400 million ($350 million in loans + $50 million in letters of credit).
- 4The remaining available credit under the facility is approximately $100 million.
- 5The borrowing is intended to enhance liquidity and cash position during a period of production capacity rationalization and cost structure improvement.
- 6The credit facility bears interest at a variable rate of LIBOR plus a margin of 62.5 basis points, subject to change based on Seagate's credit rating.
- 7Borrowings are prepayable without penalty, other than customary breakage costs.