8-KOther Events

Seagate Technology Holdings plc 8-K Report, Corporate Update (Jun 4, 2014)

Filed June 4, 2014For Securities:STX

Summary

Seagate Technology Holdings plc (STX) filed an 8-K on June 4, 2014, to report on the early tender results of cash tender offers initiated by its wholly owned subsidiary, Seagate HDD Cayman. These offers, announced on May 20, 2014, targeted the company's 7.000% Senior Notes due 2021 and 6.875% Senior Notes due 2020, with an aggregate combined principal amount cap of $300 million. As of the early tender date of June 3, 2014, the subsidiary had received tenders for approximately $277.5 million of the 2021 Notes and $252.4 million of the 2020 Notes. Seagate HDD Cayman exercised its early purchase option, accepting approximately $277.5 million of the 2021 Notes tendered, with early settlement scheduled for June 4, 2014. The tender offers are set to expire on June 17, 2014, unless extended.

Key Highlights

  • 1Seagate's subsidiary, Seagate HDD Cayman, is conducting cash tender offers for its 7.000% Senior Notes due 2021 and 6.875% Senior Notes due 2020.
  • 2The aggregate principal amount cap for the tender offers is $300 million.
  • 3As of the early tender deadline (June 3, 2014), approximately $277.5 million of 2021 Notes and $252.4 million of 2020 Notes were tendered.
  • 4Seagate HDD Cayman accepted approximately $277.5 million of the 2021 Notes tendered for early purchase.
  • 5Early settlement for the accepted 2021 Notes is scheduled for June 4, 2014.
  • 6The tender offers will officially expire on June 17, 2014, unless extended.
  • 7Morgan Stanley is acting as the sole dealer manager for these tender offers.

Frequently Asked Questions

The purpose of these tender offers is for Seagate's subsidiary, Seagate HDD Cayman, to repurchase its outstanding senior notes in the open market. This is often done to manage debt, potentially reduce interest expense, or refinance at more favorable terms.

As of the early tender date, Seagate HDD Cayman has accepted for purchase approximately $277.5 million principal amount of its 7.000% Senior Notes due 2021. The total amount tendered across both series of notes was approximately $529.9 million ($277.5 million for 2021 Notes and $252.4 million for 2020 Notes), with the company choosing to accept a portion of the 2021 Notes early.

The tender offers are scheduled to expire at 11:59 p.m. New York City time on June 17, 2014, unless Seagate HDD Cayman decides to extend them.

No, the tender offers have an aggregate combined principal amount cap of $300 million. While approximately $529.9 million was tendered in total by the early tender date, Seagate HDD Cayman exercised its option to purchase only $277.5 million of the 2021 Notes early. The total purchase amount may be subject to this $300 million cap and other conditions outlined in the offer documents.