Seagate Technology (STX +0.00%) 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.
