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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (7723)	12/8/2010 2:49:27 PM
From: Sam	Read Replies (1) \| Respond to of 7841

Follow-up to the previous article: Seagate: $850 Million Debt Plan To Raise Buybacks By Tiernan Ray Seagate (STX) filed a form 8-K with the Securities & Exchange Commission saying that it is looking to raise a combined $850 million in debt, consistent with the company’s statement on November 29th that it was looking to capitalize on the “strong” debt market. Seagate is in talks with banks for a $350 million line of credit and is issuing $500 million in bonds due 2018. The capital raise is consistent with the company’s desire to pursue an additional $2 billion in stock buybacks. One way to look at this is as my colleague Andrew Bary wrote in this week’s Barron’s print magazine, namely that the company is leveraging its balance sheet to give shareholders, not private-equity investors, the benefit of any improvement in its business.