Seagate 2010 Annual Report Download - page 91

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
requirements of the Securities Act of 1933, as amended. The obligations under the 2021 Notes are fully and unconditionally guaranteed, on a
senior unsecured basis, by the Company. The net proceeds from the offering of the 2021 Notes were approximately $588 million, which the
Company intends to use for general corporate purposes, which may include the repayment, redemption and/or repurchase of a portion of its
outstanding indebtedness, capital expenditures and investments in its business. The interest on the 2021 Notes is payable semi-annually on
January 1 and July 1 of each year. The 2021 Notes are redeemable any time prior to May 1, 2016 at the option of the Company, in whole or in
part, at a redemption price of 100% of the principal amount plus an "applicable premium" and accrued and unpaid interest, if any, to the
redemption date. The "applicable premium" will be equal to the greater of (1) 1% of the principal amount of the 2021 Notes, or (2) the excess, if
any, of (a) the present value of the redemption price on May 1, 2016 plus interest payments due through May 1, 2016, discounted at the
applicable Treasury rate as of the redemption date plus 50 basis points; over (b) the principal amount of such note. The 2021 Notes are
redeemable at any time on or after May 1, 2016 at various prices expressed as a percentage of principal amount, as set forth in the indentures,
plus accrued and unpaid interest, if any, to the redemption date. In addition, any time before May 2, 2014, the Company may redeem up to 35%
of the principal amount with the net cash proceeds from permitted sales of the Company's stock at a redemption price of 107.0% of the principal
amount plus accrued interest to the redemption date.
$750 Million Aggregate Principal Amount of 7.75% Senior Notes due December 2018 (the "2018 Notes"). On December 14, 2010, the
Company's subsidiary, Seagate HDD Cayman, completed the sale of $750 million aggregate principal amount of the 2018 Notes in a private
placement exempt from the registration requirements of the Securities Act of 1933, as amended. The obligations under the 2018 Notes are fully
and unconditionally guaranteed, on a senior unsecured basis, by the Company. The net proceeds from the offering of the 2018 Notes were
approximately $736 million, which the Company intends to use for general corporate purposes, which may include the repayment, redemption
and/or repurchase of a portion of its outstanding indebtedness. The interest on the 2018 Notes is payable semi-annually on June 15 and
December 15 of each year. The 2018 Notes are redeemable at any time prior to December 15, 2014 at the option of the Company, in whole or in
part, at a redemption price of 100% of the principal amount plus an "applicable premium" and accrued and unpaid interest, if any, to the
redemption date. The "applicable premium" will be equal to the greater of (1) 1% of the principal amount of the 2018 Notes, or (2) the excess, if
any, of (a) the present value of the redemption price on December 15, 2014 plus interest payments due through December 15, 2014, discounted
at the applicable Treasury rate as of the redemption date plus 50 basis points; over (b) the principal amount of such note. The 2018 Notes are
redeemable at any time on or after December 15, 2014 at various prices expressed as a percentage of the principal amount, as set forth in the
indentures, plus accrued and unpaid interest, if any, to the redemption date. In addition, any time before December 15, 2013, the Company may
redeem up to 35% of the principal amount with the net cash proceeds from permitted sales of the Company's stock at a redemption price of
107.75% of the principal amount plus accrued interest to the redemption date.
$600 Million Aggregate Principal Amount of 6.375% Senior Notes due October 2011 (the "2011 Notes"). The interest on the 2011 Notes
is payable semi-annually on April 1 and October 1 of each year. The issuer under the 2011 Notes is Seagate Technology HDD Cayman, and the
obligations under the 2011 Notes are unconditionally guaranteed by certain of the Company's significant subsidiaries. The 2011 Notes are
redeemable at the option of the Company in whole or in part, on not less than 30, nor more than 60 days notice, at a "make-whole" premium
redemption price. The "make-whole" redemption price will be equal to the greater of (1) 100% of the principal amount of the notes being
redeemed, or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2011 Notes being redeemed,
discounted at the redemption date on a semi-annual basis at a rate equal to the sum of the
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