New York — February 13, 2026, 13:50 EST. Regular session.
- Seagate shares barely budged by Friday’s close, despite sharp swings earlier in the session.
- The company detailed plans for a $600 million swap, exchanging existing exchangeable notes for a mix of cash and fresh shares.
- Deal closure is on traders’ radar for next week, with a new round of investor events set to kick off from Feb. 25.
Seagate Technology Holdings plc traded between $402.80 and $438.98 before edging up roughly 0.1% to $431.46 by Friday afternoon.
Investors are zeroing in on a new debt exchange featuring a hefty cash payout alongside fresh stock issuance — a combination that tends to pull on the share price in the short run. These exchangeable notes can be converted into equity, raising the risk of dilution for current shareholders.
Seagate and its Seagate HDD Cayman arm have entered into privately negotiated exchange agreements with a select group of noteholders, according to a regulatory filing. The deal covers $600 million in principal of 3.50% exchangeable senior notes due 2028. Consideration? About $599.2 million in cash, plus a to-be-determined number of Seagate ordinary shares. That share number gets set during a single trading day starting Feb. 12. Settlement is penciled in for around Feb. 17.
Seagate said it will retire the notes included in the exchange deals after the transactions wrap up. Roughly $400 million in principal will still be left outstanding, with all terms staying the same.
Shares climbed 5.9% Thursday, landing at $431.17 and beating out a number of storage and infrastructure peers as trading volume surged.
This kind of deal often attracts short-term players, since the share piece depends directly on where the market trades. Traders keep an eye out for subsequent filings—those detail exactly how many shares ended up issued, and if the exchange prompts the company to tweak its capital-return strategy.
The mood around storage stocks rippled through the session. Western Digital picked up roughly 1.1% Friday.
Seagate has lined up a series of investor appearances, with management slated to kick things off at Bernstein’s 4th Annual TMT Forum on Feb. 25—presentation time is 2:00 p.m. ET. The company then heads to a Morgan Stanley technology, media and telecom conference on March 3.
Still, the downside risk stands out. The company flagged that the exchanges are contingent on standard closing conditions, with no promises about whether the deals will go through, or what the final size and terms might look like. If the equity piece ends up bigger than expected—or if tech gets hit by a broader risk-off swing—the stock could stay choppy.
Traders are now waiting to see whether the Feb. 17 closing date holds and for specifics on the final share issuance linked to the exchange.
