Simpson Thacher recently represented Seagate Technology in the issuance of $430 million in aggregate principal amount of 10.00% Senior Secured Second-Priority Notes due 2014 and in an amendment and restatement of its senior credit facility to provide increased flexibility to Seagate in meeting its financial covenants and other obligations. Seagate is the world’s leading provider of hard disk drives, based on revenue. Seagate intends to use the net proceeds from the Notes offering for general corporate purposes, including the repayment or repurchase of all or some of its $300 million in aggregate principal amount of Floating Rate Notes due October 1, 2009 and other indebtedness.
The Notes were issued by Seagate Technology International, a subsidiary of Seagate. The loans under the Amended and Restated Credit Agreement and the Notes are guaranteed by Seagate and certain of its material subsidiaries and are secured by, respectively, first and second liens on substantially all of Seagate’s assets in the principal jurisdictions of its operations. The Amended and Restated Credit Agreement became effective on April 29, 2009 and the Notes offering closed on May 1, 2009.
The Simpson Thacher team included, among others, Bill Hinman, Bill Brentani, Rebecca Boyden, Nidhi Shah, Ryan Nolan, Philip Davidson and paralegals Jesus Villicana, Juliana Ochoa and Richard J. Lopez (Capital Markets); Marissa Wesely, Erik Hepler, Colette Pollitt, Jessica Tuchinsky, Chase D’Agostino and paralegals Nicholas Dang, Alan Stein and Tiffany Vacca (Credit); Mardi Merjian and Jennifer Lai (Real Estate); Jeffrey Ostrow, Lori Lesser, Ivan Rothman, Crystal Frierson and Keren Siman-Tov (Intellectual Property); Jason Vollbracht and former associate Benjamin Applestein (Tax); Adeeb Fadil and Noreen Lavan (Environmental); and Susan Kaufman (Executive Compensation and Employee Benefits).