Seagate Technology Holdings plc (STX): debt financing — Seagate amends credit agreement: lowers revolving commitments by $250M, eases covenants through 2025

Seagate Technology Holdings plc

Revolving commitments reduced to $1.5B from $1.75B; $450M term loan prepayment required by Sept 30, 2023 to avoid margin increases.
New total net leverage ratio of 6.75x max starting Q2 fiscal 2023, stepping down; previous total leverage ratio replaced.
Minimum interest coverage ratio set at 2.50x through mid-2024, then returns to 3.25x after covenant relief period ends June 2025.
Failure to prepay $450M by Dec 29, 2023 or ratings drop triggers collateral posting requirements.
Covenant relief period runs from May 19, 2023 to June 27, 2025, with earlier termination if total leverage ratio under 3.00x.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Seagate Technology Holdings plc amended credit facility of reduce the aggregate revolving loan commitments by $250.0 million, so that the remaining aggregate revolving loan commit with The Bank of Nova Scotia, as administrative agent at increase to the applicable interest rate margins for the revolving loans and ter.

Instrument: credit facility
Principal: reduce the aggregate revolving loan commitments by $250.0 million, so that the remaining aggregate revolving loan commit
Counterparty: The Bank of Nova Scotia, as administrative agent
Rate: increase to the applicable interest rate margins for the revolving loans and ter
Event: amendment

Exact text from the filing

any time other than during the covenant relief period. The Amendment also amended the Credit Agreement to, among other things, reduce the aggregate revolving loan commitments by $250.0 million, so that the remaining aggregate revolving loan commitments equal $1.5 billion, and provide for an increase to the applicable interest rate margins for the revolving loans and

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Seagate Technology Holdings plc amended the eighth amendment (the "Amendment") to the Credit Agreement with The Bank of Nova Scotia, as administrative agent (effective 2023-05-19).

Action: amendment
Agreement: credit facility
Counterparty: The Bank of Nova Scotia, as administrative agent
Effective: 2023-05-19

Exact text from the filing

On May 19, 2023, Seagate Technology Holdings public limited company (the “Company”) and its subsidiary Seagate HDD Cayman (the “Borrower”) entered into the eighth amendment (the “Amendment”) to the Credit Agreement, dated as of February 20, 2019, by and among the Company, the Borrower, the lenders party thereto, and The Bank of Nova Scotia, as administrative agent

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Source: SEC EDGAR

accession 0001137789-23-000032

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