Seagate 2014 Annual Report Download - page 85
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
6.Debt
Short-TermBorrowings
TheCompanyanditssubsidiaryHDDCaymanhaveenteredintoaCreditAgreementprovidingtheCompanywitha$700millionseniorsecuredrevolving
creditfacility(the"RevolvingCreditFacility").OnJanuary15,2015,pursuanttotheThirdAmendmenttotheCreditAgreement,thecommitmentsavailableunder
theRevolvingCreditFacilitywereincreasedfrom$500millionto$700millionandthematuritydatewasextendeduntilJanuary15,2020,providedthatifthe
CompanydoesnothaveInvestmentGradeRatings(asdefinedintheCreditAgreement)onAugust15,2018,thenthematuritydatewillbeAugust16,2018unless
certainextensionconditionshavebeensatisfied.ThisCreditAgreementthatwasoriginallyenteredintobytheCompanyandHDDCaymanonJanuary18,2011
wassubsequentlyamendedwiththeSecondAmendmenttotheCreditAgreementonApril30,2013,whichincreasedthecommitmentsavailableunderthe
RevolvingCreditFacilityfrom$350millionto$500million.TheloansmadeundertheCreditAgreementwillbearinterestatarateofLIBORplusavariable
marginthatwillbedeterminedbasedonthecorporatecreditratingoftheCompany.TheCompanyandcertainofitsmaterialsubsidiariesfullyandunconditionally
guaranteetheRevolvingCreditFacility.TheRevolvingCreditFacilityisavailableforcashborrowingsandfortheissuanceoflettersofcredituptoasub-limitof
$75million.AsofJuly3,2015,noborrowingshadbeendrawnorlettersofcreditutilizedundertheRevolvingCreditFacility.
Long-TermDebt
$600millionAggregatePrincipalAmountof6.8%SeniorNotesdueOctober2016(the"2016Notes").OnSeptember20,2006,theCompany'ssubsidiary,
SeagateTechnologyHDDHoldings,completedthesaleof$600millionaggregateprincipalamountofthe2016Notes,inaprivateplacementexemptfromthe
registrationrequirementsoftheSecuritiesActof1933,asamended.Theinterestonthe2016Notesispayablesemi-annuallyonApril1andOctober1ofeachyear.
Theissuerunderthe2016NotesisSeagateHDDCayman,andtheobligationsunderthe2016NotesareunconditionallyguaranteedbycertainoftheCompany's
significantsubsidiaries.The2016NotesareredeemableattheoptionoftheCompanyinwholeorinpart,onnotlessthan30,normorethan60daysnotice,ata
"make-whole"premiumredemptionprice.The"make-whole"redemptionpricewillbeequaltothegreaterof(1)100%oftheprincipalamountofthenotesbeing
redeemed,or(2)thesumofthepresentvaluesoftheremainingscheduledpaymentsofprincipalandinterestonthe2016Notesbeingredeemed,discountedatthe
redemptiondateonasemi-annualbasisatarateequaltothesumoftheapplicableTreasuryrateplus50basispoints.Duringfiscalyear2013,theCompany
repurchased$265millionaggregateprincipalamountofits2016Notesforcashatapremiumtotheirprincipalamount,plusaccruedandunpaidinterest,and
recordedalossontherepurchaseofapproximately$44million,whichisincludedinOther,netintheCompany'sConsolidatedStatementsofOperations.During
theDecember2014quarter,the2016Noteswerefullyextinguishedthroughrepurchaseandredemptionforcashatapremiumtotheirprincipalamount,plus
accruedandunpaidinterest.TheCompanyrecordedalossontherepurchaseandredemptionofapproximately$34million,whichisincludedinOther,netinthe
Company'sConsolidatedStatementofOperations.
$800millionAggregatePrincipalAmountof3.75%SeniorNotesdueNovember2018(the"2018Notes").OnNovember5,2013,SeagateHDDCayman,
issued$800millioninaggregateprincipalamountof3.75%SeniorNotes,whichmatureonNovember15,2018,inaprivateplacement.TheinterestontheNotes
ispayablesemi-annuallyonMay15andNovember15ofeachyear.TheNotesareredeemableattheoptionofSeagateHDDCaymaninwholeorinpart,onnot
lessthan30,normorethan60days'notice,ata"make-whole"premiumredemptionprice.The"make-whole"premiumredemptionpricewillbeequalto
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