Seagate completes $500 million note exchange with cash and shares

SINGAPORE - Seagate Technology Holdings plc (NASDAQ:STX) announced Wednesday it has completed the previously announced privately negotiated exchanges of $500 million principal amount of its subsidiary’s 3.50% Exchangeable Senior Notes due 2028. The transaction represents a strategic move for the data storage giant, which currently has a market capitalization of $60.49 billion.

The transaction, which closed on November 12, involved Seagate HDD Cayman exchanging the notes for approximately $503.4 million in cash and about 4.3 million ordinary shares of Seagate stock. The number of shares issued was determined based on trading activity on November 5, according to the company’s press release. Seagate shares have delivered an impressive 233% return year-to-date and are currently trading near their 52-week high of $297.88. According to InvestingPro analysis, the stock appears slightly overvalued at its current price of $283.26.

The exchanged notes have been retired, with approximately $1.0 billion in aggregate principal amount of notes remaining outstanding with unchanged terms.

The exchanges were conducted as private placements, with shares issued pursuant to Section 4(a)(2) of the Securities Act of 1933 exemption from registration requirements in transactions not involving public offerings.

Seagate Technology describes itself as a mass-capacity data storage innovator that has shipped over four billion terabytes of data capacity since its founding more than 45 years ago.

The company noted in its statement that forward-looking statements in the announcement are subject to risks and uncertainties that could cause actual results to differ from expectations, as detailed in the company’s latest periodic reports filed with the SEC.

In other recent news, Seagate Technology reported fiscal first-quarter 2026 earnings that surpassed analyst expectations, with guidance for the second quarter also exceeding consensus forecasts. This performance has led Benchmark to raise its price target for Seagate to $255, maintaining a Buy rating. Cantor Fitzgerald also maintained its Overweight rating on Seagate, citing strong demand from Cloud customers and AI applications, and raised its price target to $400 due to the company’s favorable position in the HDD market. Meanwhile, TD Cowen increased its price target to $340, highlighting bullish fundamentals and sentiment following discussions with Seagate’s management.

In addition to these analyst updates, Seagate announced an agreement to exchange $500 million of its 3.50% Exchangeable Senior Notes due 2028 for a combination of cash and shares. The exact number of shares will be determined over a one-day trading period starting November 5. These developments reflect Seagate’s strategic moves and market position, as the company continues to navigate demand dynamics and technological transitions in the data storage sector.

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