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Creditor Relations

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Financial Detail

The company may from time to time, without notice or the consent of the holders of the notes, create and issue further notes of the same series described below, ranking equally with the notes in all respects (or in all respects other than payment of interest accruing prior to the issue date of such further notes except for the first interest payment of interest following the issue date of such further notes), provided that such additional notes are fungible with the notes described for U.S federal income tax purposes. Such further notes will be consolidated and form a single series with the notes and have the same terms as to status, redemption or otherwise as the notes.
Senior Unsecured Revolving Credit Facility

Senior Unsecured Revolving Credit Facility

On February 20, 2019, the Company terminated its senior unsecured revolving credit facility scheduled to expire on January 15, 2020, under which the Company was able to draw up to $700 million. Upon termination, the Company and its subsidiary Seagate HDD Cayman entered into a new credit agreement (the “2019 Revolving Credit Facility”) which provided the Company with a $1.3 billion senior unsecured revolving credit facility. The term of the 2019 Revolving Credit Facility is through February 20, 2024. The loans made under the 2019 Revolving Credit Facility will bear interest at a rate of LIBOR plus a variable margin that will be determined based on the corporate credit rating of the Company. The Company and certain other material subsidiaries of the Company fully and unconditionally guarantee the revolving credit facility. On May 28, 2019, the Company increased the 2019 Revolving Credit Facility from $1.3 billion to $1.5 billion primarily through the addition of two lenders under the facility. The 2019 Revolving Credit Facility also allows the Company to increase the facility by an additional $100 million, provided that (i) there has been, and will be after giving effect to such increase, no default, (ii) the increase is at least $25 million, and (iii) the existing commitments under the facility receive 0.50% most favored nation protection. An aggregate amount of up to $75 million of the facility is available for the issuance of letters of credit, and an aggregate amount of up to $50 million of the facility is also available for swing line loans.

The 2019 Revolving Credit Facility includes three financial covenants: (1) interest coverage ratio, (2) total leverage ratio, and (3) a minimum liquidity amount. The Company was in compliance with the covenants as of January 3, 2020 and expects to be in compliance for the next 12 months.

As of January 3, 2020, no borrowings were drawn and no letters of credit or swing line loans had been utilized under the 2019 Revolving Credit Facility.

Senior Notes1

As of January 3, 2020

Tranche Term Volume Principal Outstanding2 Cusip Issuer Guarantor Coupon Payment Dates Call Trustee
4.25% 2022opens in a new window March 1, 2022 $750 million $500 million 81180WAV3 Seagate HDD Cayman Seagate Technology plc Semiannually, every first of March and September No additional call options Wells Fargo Bank
4.75% 2023opens in a new window June 1, 2023 $1,000 million $741 million 81180WAH4 Seagate HDD Cayman Seagate Technology plc Semiannually, every first of June and December No additional call options US Bank
4.875% 2024opens in a new window March 1, 2024 $500 million $500 million 81180WAT8 Seagate HDD Cayman Seagate Technology plc Semiannually, every first of March and September No additional call options Wells Fargo Bank
4.75% 2025opens in a new window January 1, 2025 $1,000 million $750 million 81180WAL5 Seagate HDD Cayman Seagate Technology plc Semiannually, every first of January and July No additional call options US Bank
4.875% 2027opens in a new window June 1, 2027 $700 million $690 million 81180WAR2 Seagate HDD Cayman Seagate Technology plc Semiannually, every first of January and July No additional call options Wells Fargo Bank
5.75% 2034opens in a new window December 1, 2034 $500 million $490 million 81180WAN1 Seagate HDD Cayman Seagate Technology plc Semiannually, every first of June and December No additional call options US Bank
  • All bonds are callable at a "make-whole" redemption price at anytime, which would be equal to the greater of (1) 100% of the principal amount of the notes to be redeemed, or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the applicable comparable Treasury rate plus 50 basis points (40 basis points in the case of the 2027 Notes). Accrued and unpaid interest, if any, will be paid to, but excluding, the redemption date.
  • Minor calculation variances are due to rounding.