Seagate Technology Holdings PLC (NASDAQ: STX) and its subsidiary, Seagate HDD Cayman, recently announced that they have entered into separate, privately negotiated exchange agreements with holders of Seagate HDD's 3.50% exchangeable senior notes due 2028. This move involved the exchange of $500 million principal amount of notes for approximately $503.4 million in cash and a number of Seagate's ordinary shares.
The exchanges, which are expected to be completed on or about November 10, 2025, will result in the retirement of the notes being exchanged. Following the closing of these exchanges, Seagate HDD expects that approximately $1.0 billion in aggregate principal amount of notes will remain outstanding with terms unchanged.
Seagate's press release did not provide specific details on the number of ordinary shares to be issued in the exchanges or their value. However, the company highlighted that the ordinary shares to be issued in the exchanges have not been registered under the securities laws and cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the securities laws.
Seagate Technology is known for its innovation in mass-capacity data storage and has shipped over four billion terabytes of data capacity in its over 45 years of operation. The company offers a full portfolio of storage devices, systems, and services from edge to cloud.
As a leading innovator in the data storage industry, Seagate's exchange agreements with holders of its exchangeable notes demonstrate its ongoing efforts to manage its capital structure and optimize its financial position. The market has reacted to these announcements by moving the company's shares -5.71% to a price of $250.38. If you want to know more, read the company's complete 8-K report here.
