Seagate 2015 Annual Report Download - page 87
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
6.Debt
Short-TermBorrowings
ThecreditagreemententeredintobytheCompanyanditssubsidiarySeagateHDDCaymanonJanuary18,2011andsubsequentlyamended(the"Revolving
CreditFacility")providestheCompanywitha$700millionseniorsecuredrevolvingcreditfacility.ThetermoftheRevolvingCreditFacilityisthrough
January15,2020,providedthatiftheCompanydoesnothaveInvestmentGradeRatings(asdefinedintheRevolvingCreditFacility)onAugust15,2018,thenthe
maturitydatewillbeAugust16,2018unlesscertainextensionconditionshavebeensatisfied.TheloansmadeundertheRevolvingCreditFacilitywillbearinterest
atarateofLIBORplusavariablemarginthatwillbedeterminedbasedonthecorporatecreditratingoftheCompany.TheCompanyandcertainofitsmaterial
subsidiariesfullyandunconditionallyguaranteetheRevolvingCreditFacility.TheRevolvingCreditFacilityisavailableforcashborrowings,subjectto
compliancewithcertaincovenantsandothercustomaryconditionstoborrowing,andfortheissuanceoflettersofcredituptoasub-limitof$75million.The
RevolvingCreditFacility,asamended,includesthreefinancialcovenants:(1)minimumcash,cashequivalentsandmarketablesecurities;(2)afixedcharge
coverageratio;and(3)anetleverageratio.OnApril27,2016,theRevolvingCreditAgreementwasamendedinordertoincreasetheallowablenetleverageratio
toallowforhighernetleveragelevels.TheCompanywereincompliancewiththemodifiedcovenantsasofJuly1,2016andexpecttobeincomplianceforthe
next12months.AsofJuly1,2016,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.DuringtheDecember2014quarter,the2016
Noteswerefullyextinguishedthroughrepurchaseandredemptionforcashatapremiumtotheirprincipalamount,plusaccruedandunpaidinterest.TheCompany
recordedalossontherepurchaseandredemptionofapproximately$34million,whichisincludedinOther,netintheCompany'sConsolidatedStatementof
Operations.
$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"premiumredemptionpricewillbeequaltothe
greaterof(1)100%oftheprincipalamountofthenotesbeingredeemed,or(2)thesumofthepresentvaluesoftheremainingschedulepaymentsofprincipaland
interestontheNotesbeingredeemed,
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