Seagate Technology (NASDAQ:STX) is making a little more room on its hard drive for a current offering of senior unsecured notes. The company announced it has upsized the issue to $800 million in aggregate principal amount, from the originally announced $500 million. The notes mature in 2018 and have an annual interest rate of 3.75%. They are being issued by a Cayman Islands-based subsidiary, and are to be guaranteed by the company.
Seagate said it plans to use the issue's estimated net proceeds of $791 million for "general corporate purposes, which may include, but are not limited to, the retirement of a portion of its outstanding indebtedness, capital expenditures and other investments in the business."
The notes are being sold to qualified institutional buyers in a private placement expected to close next Tuesday.
At the end of its most recently reported quarter, Seagate's long-term debt stood at nearly $2.8 billion. It had cash and short-term investments totaling just under $2.3 billion.
Fool contributor Eric Volkman has no position in Seagate Technology. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.