What is happening with Seagate's 3.50% Exchangeable Senior Notes due 2028?

Seagate HDD Cayman, a subsidiary of Seagate Technology Holdings plc, has announced a redemption of all outstanding 3.50% Exchangeable Senior Notes due 2028. The redemption is set for September 8, 2026, where notes will be redeemed for cash at their principal amount plus accrued interest.

What options do noteholders have before the redemption date?

Noteholders have the option to exchange their Notes for ordinary shares of Seagate Technology Holdings plc. The exchange must be completed by 5:00 p.m. New York City time on September 3, 2026. After this date, if not exchanged, the notes will be redeemed for cash.

How will the exchange rate be affected by the dividend?

The current exchange rate is 12.1363 ordinary shares per $1,000 principal amount. This rate will be adjusted on June 25, 2026, to reflect the previously announced dividend of $0.74 per ordinary share, as per the terms of the indenture.

How will Seagate settle exchanges that exceed the principal amount?

Seagate plans to settle exchange obligations that are in excess of the principal amount by delivering ordinary shares. Cash will be provided if applicable, in lieu of delivering any fractional ordinary shares.

STX 8-K: Regulation FD — Jun 12, 2026

Summary

Seagate Technology Holdings plc (STX) has announced the redemption of all outstanding 3.50% Exchangeable Senior Notes due 2028 issued by its subsidiary, Seagate HDD Cayman. The redemption is scheduled for September 8, 2026, with notes to be redeemed for cash at their principal amount plus accrued and unpaid interest, unless a failure to pay occurs. Investors holding these notes have a crucial window to exchange them for Seagate ordinary shares. The exchange deadline is September 3, 2026, and the current exchange rate is 12.1363 ordinary shares per $1,000 principal amount. Notably, this exchange rate will be adjusted on June 25, 2026, to account for a previously announced dividend of $0.74 per ordinary share.

Key Highlights

1Seagate HDD Cayman initiating redemption of all outstanding 3.50% Exchangeable Senior Notes due 2028.
2Redemption Date set for September 8, 2026.
3Redemption Price will be the principal amount plus accrued and unpaid interest.
4Holders can exchange Notes for Seagate ordinary shares until September 3, 2026 (Exchange Deadline).
5Current exchange rate is 12.1363 Ordinary Shares per $1,000 principal.
6Exchange rate will be adjusted on June 25, 2026, due to a $0.74 per share dividend.
7Seagate intends to settle exchange obligations exceeding principal with Ordinary Shares and cash.

Seagate Technology Holdings plc 8-K Report, Regulation FD Disclosure (Jun 12, 2026)

Summary

Key Highlights

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