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

To: Sam who wrote (7724)	12/8/2010 5:06:37 PM
From: Sam	Read Replies (2) \| Respond to of 7841

Seagate: Whopping Yield On Those Bonds By Tiernan Ray I’d note that upon further reflection, Seagate’s (STX) announced $500 million in senior notes due 2018 is projected to have a rather remarkable yield of 7.25% to 8%. That’s a hefty payoff for a company with a BB credit rating and no net debt. The company’s intention is to use that funding, along with a $350 million credit facility, to help with an extensive share buyback — it said last month its board approved an additional $2 billion in repurchases. The high yield likely reflects lingering concerns about the drive industry as a whole, and perhaps some judgement and perhaps disapproval as to the use of cash for buybacks. For a bullish view on Seagate’s use of its balance sheet, see Andrew Bary’s column in this week’s Barron’s magazine. Seagate shares this afternoon are down 5 cents at $15.11.