8-KOther EventsExhibits & Filings

Seagate Technology Holdings plc 8-K Report, Corporate Update (Jun 25, 2010)

Filed June 25, 2010For Securities:STX

Summary

Seagate Technology Holdings plc (STX) filed an 8-K on June 25, 2010, announcing the redemption of two series of convertible subordinated debentures by its indirect wholly-owned subsidiary, Seagate Technology (US) Holdings, Inc. (STUS). Specifically, STUS will redeem all outstanding principal amounts of its 5.75% Convertible Subordinated Debentures due March 2012 and its 2.375% Convertible Senior Notes due August 2012. This action represents a significant debt management event for the company. The 5.75% Notes will be redeemed on July 27, 2010, at par plus accrued interest. The 2.375% Notes will be redeemed on August 20, 2010, at a slight premium (100.68%) plus accrued interest. These debentures were originally issued by Maxtor Corporation, with STUS having assumed the obligations in June 2009. Investors holding these notes should be aware of the redemption dates and payment terms.

Key Highlights

  • 1Seagate Technology (US) Holdings, Inc. (STUS), a subsidiary of Seagate Technology plc, is calling for the redemption of its 5.75% Convertible Subordinated Debentures due March 2012.
  • 2STUS is also calling for the redemption of its 2.375% Convertible Senior Notes due August 2012.
  • 3The redemption of the 5.75% Notes is scheduled for July 27, 2010, at 100% of the principal amount plus accrued interest.
  • 4The redemption of the 2.375% Notes is scheduled for August 20, 2010, at 100.68% of the principal amount plus accrued interest.
  • 5The entire outstanding principal amounts for both note series will be redeemed.
  • 6These debentures were originally issued by Maxtor Corporation and STUS assumed the obligations in June 2009.

Frequently Asked Questions

The main event is that Seagate Technology (US) Holdings, Inc. (STUS), an indirect wholly-owned subsidiary of Seagate Technology plc, has announced the redemption of its outstanding 5.75% Convertible Subordinated Debentures due March 2012 and its 2.375% Convertible Senior Notes due August 2012.

The 5.75% Notes will be redeemed on July 27, 2010, at 100% of their principal amount plus accrued interest. The 2.375% Notes will be redeemed on August 20, 2010, at 100.68% of their principal amount plus accrued interest.

After the applicable redemption date, the notes will no longer be considered outstanding, interest will stop accruing, and all rights of the holders, except for the right to receive the redemption payment, will cease.

These debentures were originally issued by Maxtor Corporation. Seagate Technology (US) Holdings, Inc. (STUS) succeeded Maxtor as the issuer of these notes through supplemental indentures entered into on June 1, 2009.