Seagate 2002 Annual Report Download - page 20

PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON STOCK AND RELATED SHAREHOLDER MATTERS
Market Information
Our common shares have traded on the New York Stock Exchange under the symbol “STX” since December 11, 2002. Prior to that time
there was no public market for our common shares. The high and low sales prices of our common shares, as reported by the New York Stock
Exchange, are set forth below for the periods indicated.
The closing price of our common shares as reported by the New York Stock Exchange on August 15, 2003 was $20.70 per share. As of
August 15, 2003 there were approximately 1,041 holders of record of our common shares. There were no sales of our equity securities during
fiscal year 2003 that were not registered under the Securities Act of 1933.
Dividends
Price Range
Fiscal year 2003 High Low
Quarter ending December 27, 2002 (commencing December 11, 2002)
$
11.78
$
9.86
Quarter ending March 28, 2003
$
12.95
$
7.78
Quarter ending June 27, 2003
$
18.49
$
9.98
On June 27, 2003, our board of directors amended our quarterly dividend policy and, pursuant to our amended policy, we expect to pay
our shareholders a quarterly distribution of up to $0.04 per share ($0.16 annually) so long as the aggregate amount of the distribution does not
exceed 50% of our consolidated net income for the quarter in which the distribution is declared, as determined under generally accepted
accounting principles in the United States and reflected in our publicly filed financial statements for the quarter.
We are restricted in our ability to pay distributions by the covenants contained in the indenture governing our senior notes and the credit
agreement governing our senior secured credit facilities. Our declaration of distributions is also subject to Cayman Islands law and the
discretion of our board of directors. Under the terms of the Seagate Technology shareholders agreement, at least seven members of our board of
directors must approve the payment of distributions in excess of 15% of our net income in the prior fiscal year. In deciding whether or not to
declare quarterly distributions, our directors will take into account such factors as general business conditions within the rigid disc drive
industry, our financial results, our capital requirements, contractual and legal restrictions on the payment of distributions by our subsidiaries to
us or by us to our shareholders, the impact of paying distributions on our credit ratings and such other factors as our board of directors may
deem relevant.
On July 14, 2003, our board of directors declared a quarterly distribution of $0.04 per share to be paid on or before August 22, 2003 to
our shareholders of record as of August 8, 2003. Since the closing of our initial public offering, we have made distributions, pursuant to our
quarterly dividend policy in effect at such time, of $0.03 per share to our shareholders of record as of each of February 14, 2003 and May 9,
2003. These distributions have totaled approximately $26 million in the aggregate.
Since the closing of the November 2000 transactions, we have made additional distributions unrelated to our quarterly dividend policy.
These include:
• distributions of approximately $33 million and $167 million to our shareholders of record as of March 19, 2002 and May 17, 2002,
respectively;
• an in-kind distribution of a $32 million promissory note to our shareholders of record immediately following our sale of our XIOtech
subsidiary on November 4, 2002; and
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• a distribution of approximately $262 million to our shareholders of record immediately prior to our initial public offering.