Summary
Seagate Technology plc (STX) announced on February 18, 2011, that its indirect wholly-owned subsidiary, Seagate Technology International (STI), will redeem a portion of its 10.00% Senior Secured Second-Priority Notes due 2014. The redemption involves $14,425,000 in principal amount of these notes, utilizing net cash proceeds from the Company's Employee Stock Purchase Plan. This action indicates the company's intention to reduce its outstanding debt. The redemption is scheduled for March 31, 2011, and the notes will be repurchased at 110% of their principal amount, in addition to any accrued and unpaid interest. Following this redemption, the outstanding principal amount of the Notes will be approximately $415.6 million. Investors should note this move as it reflects a strategic decision by Seagate to manage its debt obligations, potentially impacting its leverage and interest expense.
Key Highlights
- 1Seagate Technology International (STI), an indirect subsidiary, will redeem $14,425,000 of its 10.00% Senior Secured Second-Priority Notes due 2014.
- 2The redemption is being funded by net cash proceeds from the Company's Employee Stock Purchase Plan.
- 3The redemption date is set for March 31, 2011.
- 4The redemption price is 110% of the principal amount, plus accrued and unpaid interest.
- 5Following the redemption, approximately $415.6 million of the Notes will remain outstanding.
- 6This action demonstrates Seagate's proactive debt management strategy.
- 7The filing was made on February 18, 2011, and reports an event from February 17, 2011.