STX · 10-Q · 2026Q4 · Full report

Liquidity and Debt Position

Seagate Technology Holdings plc · 2026-10-29 · Importance 67 · Surprise 66 · In source text

Cash and cash equivalents were $1.258 billion as of October 2, 2026, down $446 million from $1.704 billion on July 3, 2026. The company reduced outstanding principal debt by $1.2 billion during the quarter, primarily through redemption and repurchase of Senior Notes and exchanges and redemption of remaining 2028 Notes; total consideration included $1.1 billion for certain Senior Notes and $186 million cash plus approximately 2 million ordinary shares for the 2028 Notes. Long-term debt principal obligations were $2.4 billion, and estimated future interest payments were $905 million, including $153 million due within one year. The company had $1.3 billion available under its revolving credit facility, no facility borrowings outstanding, and was in compliance with its debt covenants; it subsequently redeemed $750 million principal amount of 2032 Notes on October 15, 2026.

Key facts

• Seagate reduced its outstanding principal amount of debt by $1.2 billion during the September 2026 quarter. source
• Seagate's debt reduction included $1.1 billion of consideration for redemption and repurchase of certain Senior Notes and $186 million cash plus approximately 2 million ordinary shares for exchanges and redemption of its remaining 2028 Notes. source
• Seagate redeemed $750 million principal amount of its 2032 Notes on October 15, 2026, after the balance sheet date. source
• Seagate used $1.3 billion for redemption and repurchase of certain Senior Notes and exchanges and redemption of its remaining 2028 Notes during the three months ended October 2, 2026. source
• Seagate's Credit Agreement sets a maximum net leverage ratio of 6.75 to 1.00, beginning with the quarter ended June 27, 2025, declining to 4.25 to 1.00 for quarters ending after July 2, 2027. source
• Seagate's net cash used in financing activities was $1.8 billion in the three months ended October 2, 2026. source
• Seagate's future principal payment obligation on long-term debt was $2.4 billion as of October 2, 2026. source
• Seagate had approximately $1.3 billion in cash and cash equivalents and $1.3 billion available to borrow under its Revolving Credit Facility as of October 2, 2026. source

Impact estimates