Summary
This 8-K filing by Seagate Technology plc (STX) on December 8, 2010, primarily announces two significant financial events. First, the company is in discussions to establish a new corporate credit facility of up to $350 million, which would be secured by a lien on substantially all company assets and include standard covenants. These discussions are ongoing and there is no guarantee of a facility being established, with any potential loans intended for general corporate and working capital purposes. Second, and more concretely, Seagate has announced the offering of $500 million of Senior Notes due 2018. This offering is being conducted to qualified institutional buyers and in offshore transactions. Investors should note that the credit facility is still in preliminary discussion stages, while the Senior Notes offering has been formally announced. Both actions signal Seagate's intent to manage its capital structure and secure funding for its operations.
Key Highlights
- 1Seagate Technology plc is in discussions to secure a new corporate credit facility of up to $350 million.
- 2The proposed credit facility would be secured by a first priority lien on substantially all of the company's material assets and subsidiaries.
- 3Discussions for the credit facility are ongoing, with no commitment or guarantee of its establishment.
- 4Any loans from the credit facility would be used for general corporate and working capital purposes.
- 5Seagate has formally announced an offering of $500 million of Senior Notes due 2018.
- 6The Senior Notes offering is targeted at qualified institutional buyers and will be conducted in offshore transactions.
- 7The company previously filed its Form 10-Q on November 3, 2010, and its 2010 Annual Report on Form 10-K/A on October 6, 2010, which contain further details on risks and financial performance.