Seagate Technology Announces Pricing of $430 Million of Senior Secured Second-Priority Notes



    SCOTTS VALLEY, Calif., April 16 /CNW/ -- Seagate Technology (Nasdaq:   STX)
today announced the pricing of its previously announced offering of $430
million aggregate principal amount of 10.00% Senior Secured Second-Priority
Notes due 2014 (the "Notes"). The Notes will be issued by Seagate Technology
International ("STI"), an indirect wholly-owned subsidiary of Seagate
Technology, and guaranteed by Seagate Technology, Seagate Technology HDD
Holdings and all of Seagate Technology's other subsidiaries that guarantee its
senior secured credit facility, on a full and unconditional basis and secured
by a second-priority lien on the assets that secure the senior secured credit
facility. The Notes are being sold in a private placement to qualified
institutional buyers pursuant to Rule 144A and Regulation S under the
Securities Act of 1933, as amended (the "Securities Act"). The sale of the
Notes is expected to close on May 1, 2009, subject to the senior secured
credit facility becoming effective on or prior to such date and subject to
customary closing conditions.
    

    
    Seagate estimates that the net proceeds from the offering will be
approximately $399 million after deducting discounts and estimated offering
expenses.
    

    
    Seagate intends to use the net proceeds from the offering for general
corporate purposes, including the repayment or repurchase of all or some of
its $300 million aggregate principal amount of floating rate senior notes due
October 1, 2009 and other indebtedness.
    

    
    This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes nor shall there be any sale of the
Notes in any state in which such offer, solicitation or sale would be
unlawful. The offering of the Notes will be made only by means of a private
offering memorandum relating to the Notes. The Notes have not been and will
not be registered under the Securities Act, or applicable state securities
laws, and may not be offered or sold in the United States absent registration
or pursuant to an applicable exemption from the registration requirements of
the Securities Act and applicable state securities laws.
    

    Cautionary Note Regarding Forward-Looking Statements
    
    This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements include,
but are not limited to, statements related to the proposed offering of the
Notes and the anticipated use of proceeds therefrom. These forward-looking
statements are based on information available to Seagate as of the date of
this press release. Current expectations, forecasts and assumptions involve a
number of risks and uncertainties that could cause actual results to differ
materially from those anticipated by these forward-looking statements. Such
risks and uncertainties include a variety of factors, some of which are beyond
the company's control. In particular, such risks and uncertainties include the
impact of conditions in the credit markets generally and, in particular, for
companies in the markets in which Seagate operates, and uncertainty in global
economic conditions, which pose a risk to the overall economy as consumers and
businesses may defer purchases in response to tighter credit and negative
financial news. Information concerning additional factors that could cause
results to differ materially from those projected in the forward-looking
statements is contained in Seagate's Quarterly Report on Form 10-Q as filed
with the U.S. Securities and Exchange Commission (the "SEC") on February 10,
2009 and Seagate's Annual Report on Form 10-K as filed with the SEC on August
13, 2008. These forward-looking statements should not be relied upon as
representing Seagate's views as of any subsequent date and Seagate undertakes
no obligation to update forward-looking statements to reflect events or
circumstances after the date they were made.
    



    




For further information:

For further information: Media, Brian Ziel, +1-831-439-5429,
brian.ziel@seagate.com, or Investors, Rod Cooper, +1-831-439-2371,
rod.j.cooper@seagate.com, both of Seagate Web Site: http://www.seagate.com

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