secwatch.observer — SEC 8-K summary
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Issuer:     Seagate Technology Holdings plc (STX)
CIK:        0001137789
Form:       8-K
Filed at:   2023-05-22T23:59:59+00:00
Accession:  0001137789-23-000032
Event type: debt
Sentiment:  neutral
Materiality: 0.65
Item codes: 1.01, 2.03
LLM model:  deepseek-v4-flash:cloud@v2

Seagate amends credit agreement: lowers revolving commitments by $250M, eases covenants through 2025
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- 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.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1137789/000113778923000032/0001137789-23-000032-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1137789/000113778923000032/stx-20230519.htm
  HTML page:      https://secwatch.observer/filing/0001137789-23-000032

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer