Seagate joins flurry of bond issuance with plans to issue up to $1 billion of high-yield bonds
Data storage company Seagate Technology Holdings Plc (STX) said Tuesday it plans to offer up to $1 billion of six-year and eight-year high-yield bonds in a private placement. Proceeds will be used to redeem in full its 4.875% notes due 2024, to repay $450 million of term loans and for general corporate purposes, which may include repaying other debt, for capex and for other investments in the business. The move comes amid a flurry of bond issuance by companies eager to get ahead of the current debt ceiling deadline, with Treasury Secretary Janet Yellen warning that the U.S. will not be able to pay all its bills by June 1 if the ceiling is not raised. The flow of deals include a $30 billion offering from Pfizer Inc. (PFE) last week. Seagate stock has gained 20% in the year to date, while the S&P 500 has gained 9%.
-Ciara Linnane
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05-23-23 0741ET
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