Seagate Announces Offering of Exchangeable Senior Unsecured Notes

Seagate HDD Cayman (the “Company”), a subsidiary of Seagate Technology Holdings plc (NASDAQ: STX) (“Seagate”), today announced that it intends, subject to market and other conditions, to offer up to $1.3 billion in aggregate principal amount of exchangeable senior notes due 2028 (the “Notes”) in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company also expects to grant the initial purchasers of the Notes an option to purchase up to an additional $200 million aggregate principal amount of Notes for settlement within a 13-day period beginning on, and including, the date on which the notes are first issued, solely to cover over-allotments. The Notes are expected to be guaranteed by Seagate and Seagate Technology Unlimited Company.

The Notes will be exchangeable under certain circumstances at the option of the holders into cash up to the aggregate principal amount of Notes to be exchanged, and cash, ordinary shares of Seagate, or a combination of both, at Seagate’s election, in respect of any remainder of the Company’s conversion obligation in excess of such principal amount. The interest rate, initial exchange rate and other terms of the Notes will be determined at the time of pricing of the offering.

In connection with the pricing of the Notes, the Company and Seagate expect to enter into privately negotiated capped call transactions with one or more of the initial purchasers in the Note offering or their respective affiliates and/or other financial institutions (the “option counterparties”) having an expiration date that is the same as the maturity date of the Notes. The capped call transactions are expected to cover, subject to customary anti-dilution adjustments substantially similar to those applicable to the Notes, the same number of Seagate’s ordinary shares that will initially underly the Notes.

The capped call transactions are expected generally to reduce the potential dilution to Seagate’s ordinary shares and/or offset potential cash payments the Company is required to make in excess of the principal amount, in each case, upon any exchange of the Notes, with such reduction and/or offset subject to a cap. If the market price per ordinary share, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such potential cash payments, in each case, to the extent that such market price exceeds the cap price of the capped call transactions. If the initial purchasers of the Notes exercise their over-allotment option, the Company expects to enter into additional capped call with the option counterparties.