Seagate Tech (STX) just unveiled an update.
Seagate HDD Cayman, a subsidiary of Seagate Technology Holdings plc, issued $1.5 billion of 3.50% Exchangeable Senior Notes due in 2028, with each $1,000 note initially convertible into 12.1253 ordinary shares at about $82.47 per share. The company’s GAAP earnings per share may be affected by incremental dilution when its stock price exceeds this exchange price. To mitigate potential dilution from the conversion of these notes, Seagate entered into capped call transactions with a cap price of $107.8480 per share, reducing dilution or offsetting cash payments above the principal amount. The impact of these transactions on future GAAP and Non-GAAP EPS will depend on the company’s quarterly average stock price.
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