8-KOther EventsExhibits & Filings

Seagate Technology Holdings plc 8-K Report, Corporate Update (Jun 18, 2014)

Filed June 18, 2014For Securities:STX

Summary

Seagate Technology plc (STX) announced the successful completion of its cash tender offers for its 7.000% Senior Notes due 2021 and 6.875% Senior Notes due 2020. The company's subsidiary, Seagate HDD Cayman, aimed to purchase up to an aggregate of $300 million in principal amount of these notes. The offers expired on June 17, 2014, and due to oversubscription, the accepted purchases were subject to proration. In total, Seagate accepted for purchase $277.5 million aggregate principal amount of the 2021 Notes and $22.5 million aggregate principal amount of the 2020 Notes, falling within the $300 million maximum. The company paid a tender offer price of $1,058.74 per $1,000 principal amount for the 2020 Notes, including an early tender premium for those submitted by June 3, 2014. This action reflects Seagate's ongoing debt management strategy.

Key Highlights

  • 1Seagate Technology plc successfully completed its cash tender offers for two series of senior notes.
  • 2The aggregate principal amount of notes accepted for purchase was $300 million ($277.5 million of 2021 Notes and $22.5 million of 2020 Notes).
  • 3The tender offers were oversubscribed, leading to proration of accepted tenders.
  • 4An early purchase option was exercised for the 2021 Notes, with approximately $277.5 million accepted on June 4, 2014.
  • 5The tender price for the 2020 Notes was $1,058.74 per $1,000 principal, including an early tender premium.
  • 6The settlement date for the accepted 2020 Notes was June 18, 2014.
  • 7This tender offer is part of the company's proactive debt management.

Frequently Asked Questions

The primary purpose of this 8-K filing was to announce the successful completion of Seagate Technology plc's cash tender offers for its 7.000% Senior Notes due 2021 and 6.875% Senior Notes due 2020, providing details on the amount of notes accepted and the settlement.

Seagate Technology accepted for purchase a combined aggregate principal amount of $300 million of its senior notes, consisting of $277.5 million of the 2021 Notes and $22.5 million of the 2020 Notes.

No, the tender offers were oversubscribed, meaning the total principal amount of notes tendered exceeded the maximum $300 million limit. Therefore, the accepted notes were subject to proration according to the terms outlined in the Offer to Purchase.

For the 2020 Notes that were accepted for payment after the expiration, Seagate paid $1,058.74 per $1,000 principal amount, which included an early tender premium for those submitted by the early tender deadline of June 3, 2014. Accrued interest was also paid.