v3.26.3
Debt
 3 Months Ended
Oct. 02, 2026
Debt Disclosure [Abstract]  
Debt Debt
The following table provides details of the Company’s debt as of October 2, 2026 and July 3, 2026:
(Dollars in millions)October 2, 2026July 3, 2026
Unsecured Senior Notes issued by Seagate HDD Cayman (1)
$500 issued on June 18, 2020 at 4.091% due June 1, 2029 (the “Old June 2029 Notes”) (3)
38 38 
$500 issued on December 8, 2020 at 3.125% due July 15, 2029 (the “Old July 2029 Notes”) (4)
38 38 
$500 issued on May 30, 2023 at 8.25% due December 15, 2029 (the “Old December 2029 Notes”) (5)
— 8 
$500 issued on June 10, 2020 at 4.125% due January 15, 2031 (the “Old January 2031 Notes”) (4)
22 22 
$500 issued on December 8, 2020 at 3.375% due July 15, 2031 (the “Old July 2031 Notes”) (4)
16 16 
$500 issued on May 30, 2023 at 8.50% due July 15, 2031 (the “Old 8.50% July 2031 Notes”) (4)
— 29 
$750 issued on November 30, 2022 at 9.625% due December 1, 2032 (the “Old 2032 Notes”) (3)
19 19 
$500 issued on December 2, 2014 at 5.75% due December 1, 2034 (the “Old 2034 Notes”) (3)
162 162 
Unsecured Senior Notes issued by Seagate Data Storage Technology Pte. Ltd. (2)
$400 issued on May 27, 2025 at 5.875% due July 15, 2030 (the “2030 Notes”) (4)
400 400 
$431 issued on June 30, 2025 at 4.091% due June 1, 2029 (the “New June 2029 Notes”) (3)
312 332 
$100 issued on June 30, 2025 at 3.125% due July 15, 2029 (the “New July 2029 Notes”) (4)
98 98 
$492 issued on June 30, 2025 at 8.25% due December 15, 2029 (the “New December 2029 Notes”) (5)
— 492 
$213 issued on June 30, 2025 at 4.125% due January 15, 2031 (the “New January 2031 Notes”) (4)
164 177 
$45 issued on June 30, 2025 at 3.375% due July 15, 2031 (the “New July 2031 Notes”) (4)
45 45 
$471 issued on June 30, 2025 at 8.50% due July 15, 2031 (the “New 8.50% July 2031 Notes”) (4)
— 471 
$731 issued on June 30, 2025 at 9.625% due December 1, 2032 (the “New 2032 Notes”) (3)
731 731 
$328 issued on June 30, 2025 at 5.75% due December 1, 2034 (the “New 2034 Notes”) (3)
327 327 
Exchangeable Senior Notes (1)
$1,500 issued on September 13, 2023 at 3.50% due June 1, 2028 (the “2028 Notes”) (6)
— 186 
2,372 3,591 
Less: unamortized debt issuance costs(21)(26)
Debt, net of debt issuance costs2,351 3,565 
Less: current portion of long-term debt, net of debt issuance costs— (185)
Long-term debt, less current portion$2,351 $3,380 
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(1) Notes are issued by Seagate HDD Cayman (“Seagate HDD”), and the obligations under these notes were fully and unconditionally guaranteed, on a senior unsecured basis, by Seagate Technology Unlimited Company (“STUC”) and Seagate Technology Holdings plc (“STH PLC”). Supplemental indentures for each series of Old Notes became operative on June 30, 2025 and gave effect to certain amendments which, among other things, released STUC and STH PLC from their respective guarantee obligations with respect to each series of Old Notes.
(2) Notes are issued by Seagate Data Storage Technology Pte. Ltd. (“SDST”), and the obligations under these notes are fully and unconditionally guaranteed, on a senior unsecured basis, by STUC, Seagate HDD and STH PLC.
(3) Interest payable semi-annually on June 1 and December 1 of each year.
(4) Interest payable semi-annually on January 15 and July 15 of each year.
(5) Interest payable semi-annually on June 15 and December 15 of each year.
(6) Interest payable semi-annually on March 1 and September 1 of each year.

2028 Exchangeable Senior Notes and related Capped Call Transactions
In June 2026, holders of $35 million aggregate principal amount of the 3.50% Exchangeable Senior Notes due 2028 (the “2028 Notes”) exercised their exchange right in accordance with the terms of the indenture. In settlement, during the three months ended October 2, 2026, the Company paid $35 million principal amount in cash and delivered approximately 0.4 million shares of the Company’s common stock in respect of the exchange obligation in excess of the principal amount.
On September 8, 2026, the Company exchanged the remaining outstanding principal amount of the 2028 Notes for approximately $151 million in cash and approximately 1.6 million shares of the Company’s common stock. These exchanges were effected strictly under the original terms of the indenture, with no amendment to the exchange terms and no incremental consideration or inducement offered to holders, and therefore they were accounted for as conversions under ASC 470-20-40-4. Accordingly, no gain or loss was recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income. No 2028 Notes remained outstanding as of October 2, 2026.
There was no corresponding change to the $1.5 billion notional value of the capped call transactions as of October 2, 2026. The current cap price of the capped call transactions is $107.741 per share.
2029 and 2031 Notes
On July 15, 2026, the entire outstanding principal amounts of the Old December 2029 Notes, the New December 2029 Notes, the Old 8.50% July 2031 Notes and the New 8.50% July 2031 Notes totaling $1 billion principal amount were redeemed. The Company recorded a net loss of $44 million within Net loss from debt transactions in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income.
Debt Repurchases
During the September 2026 quarter, $21 million principal amount of the New June 2029 Notes and $13 million principal amount of the New January 2031 Notes were repurchased for cash at a discount to their principal amount, plus accrued and unpaid interest. The Company recorded an immaterial gain on these repurchases which was included in Net loss from debt transactions in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income.
2032 Notes
Subsequent to the Company’s Condensed Consolidated Balance Sheet date, on October 15, 2026, the entire outstanding principal amounts of the Old 2032 Notes and the New 2032 Notes (the “2032 Notes”) totaling $750 million were redeemed. The Company expects to record a net loss of approximately $81 million in the second quarter of fiscal year 2027.
Credit Agreement
On January 30, 2025, the Company and its subsidiary Seagate HDD Cayman (the “Borrower”), the Bank of Nova Scotia, as administrative agent, and the lenders thereto entered into a Credit Agreement (the “Credit Agreement”) which provides for a $1.3 billion senior unsecured revolving credit facility (“Revolving Credit Facility”), the term of which is through January 30, 2030. The Revolving Credit Facility is available for cash borrowings, subject to compliance with certain covenants and other customary conditions to borrowing. An aggregate amount of up to $150 million of the facility shall also be available for the issuance of letters of credit, and an aggregate amount of up to $50 million of the facility shall also be available for swing line loans. As of October 2, 2026, no borrowings were outstanding under the Credit Agreement.
The loans made under the Credit Agreement bear interest at an Applicable Rate based on the secured overnight financing rate, or SOFR, plus a variable margin that will be determined based on the corporate credit rating of the Company. The Borrower’s obligations under the Credit Agreement are guaranteed by the Company and certain material subsidiaries of the Company.
The Credit Agreement also contains a financial covenant that requires the Company to maintain a total net leverage ratio of less than or equal to 6.75 to 1.00, commencing with the fiscal quarter ended June 27, 2025 and declining over time so that the maximum permitted net leverage ratio for each fiscal quarter ending after July 2, 2027 is 4.25 to 1.00, in accordance with the terms of the Credit Agreement.
Future Principal Payments on Long-term Debt
At October 2, 2026, future principal payments on long-term debt were as follows (in millions):
Fiscal YearAmount
Remainder of 2027— 
2028— 
2029360 
2030136 
2031586 
Thereafter1,301 
Total$2,383