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FREMONT, Calif. - Seagate Data Storage Technology Pte. Ltd., a subsidiary of Seagate Technology Holdings plc (NASDAQ: STX), a $20.31 billion market cap company with a GREAT financial health score according to InvestingPro, announced today its intention to offer $400 million in senior notes due 2030 in a private placement. This offering targets qualified institutional buyers and certain non-U.S. persons in offshore transactions. The notes are to be guaranteed by Seagate and its affiliates, Seagate Technology Unlimited Company and Seagate HDD Cayman.
Concurrently, Seagate HDD Cayman has issued a notice for the full redemption of its 4.875% Senior Notes due 2027. The redemption is conditional upon the company securing sufficient funds from the new offering and available cash to cover the redemption price, which includes a make-whole premium and accrued interest.
The proceeds from the sale of the new notes, along with existing cash, are earmarked to finance this redemption and pay related expenses. The notes will not be publicly offered in the United States or other jurisdictions where such an offering would be unlawful without registration or exemption. With $8.54 billion in revenue over the last twelve months and a strong dividend track record of 15 consecutive years of payments, Seagate maintains a solid financial position in the market.
Seagate Technology, with over four decades of experience in the data storage industry, is known for its innovation in mass-capacity storage solutions. The company has shipped more than four billion terabytes of data capacity and provides a comprehensive range of storage products and services.
This press release contains forward-looking statements regarding the offering and its completion, which are subject to market conditions and other factors that could influence the final terms and success of the placement. Seagate Technology advises not to place undue reliance on these statements, which are applicable only as of today. According to InvestingPro analysis, the company appears undervalued at its current price of $95.71, with 14 analysts recently revising their earnings estimates upward. For detailed valuation metrics and more exclusive insights, check out the comprehensive Pro Research Report available on InvestingPro.
The information in this article is based on a press release statement from Seagate Technology Holdings plc.
In other recent news, Seagate Technology’s financial results have exceeded expectations, with the company reporting a significant year-over-year sales increase of 30% despite a sequential dip of 7.3%. The company anticipates continued strong demand, particularly for Nearline products, which are expected to drive sales growth through fiscal year 2026. Mizuho Securities recently adjusted its price target for Seagate to $95, down from $115, while maintaining an Outperform rating, citing the rollout of Heat-Assisted Magnetic Recording (HAMR) technology as a catalyst for future market share gains. Cantor Fitzgerald also revised its price target to $110, maintaining a Neutral rating, and highlighted Seagate’s optimistic projections for 2025. Citi reduced its price target to $115 from $125 but retained a Buy rating, noting the impact of the global minimum tax and the positive influence of HAMR technology on gross margins. Benchmark analysts reiterated a Buy rating with a $120 price target, reflecting confidence in Seagate’s ability to overcome supply constraints and sustain revenue momentum. The company is set to reveal a new long-term financial model and product roadmap at an upcoming investor day. These developments underscore Seagate’s strategic focus on advancing technology and expanding capacity to meet growing data storage demands.
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