Thread regarding Seagate Technology Inc. layoffs

The ‘gang’ is celebrating the $1B ‘new’ loan secured to pay off the old debt. The celebration is about going from a 8% interest payment to 10% on the new loan. This is like refinancing your house every 3 months at an incremental 2% interest each time. Geniuses, the board continues to sleep on the job.

Maybe @1vgs was making the point that Dave has run out of bad ideas on how to stay out of Bankruptcy. Irony seems to be a foreign concept to the Executive Class at Seagate. With out some sort of deep pockets investor coming in to cover the debt payments we might be out of options.

@1vgs - Maybe I missed something. Years of share buybacks and excessive dividends, which partly hamstrung engineering, was not for the money? Please entertain us with your explanation.

The only Seagate CEO that fail to apologize for the worst structure of costly white elephant management.

Ideal layoff for tax purposes would be in January. At least there’s that to hope for to keep me coming in.

Lol the book value to share price is $-4.85.... In comparison, WD is $36.40. This company is so F#$&Ked

9. 625%? Ouch! I was just trying to be nice going with the number average healthy companies are using. Well that doesn’t really help the math at all. In the next two quarters without a massive uptick in sales things are about to get really dicey. No cash for someone. Thanks for the correction on the interest numbers. Frig sakes I was really hoping to get the package.

At 4.5% interest...

4. 5% interest? Can I smoke whatever you are having?

Seagate's most recent loans were at 9.625%, and that was six months ago before the company was recently downgraded by the rating agencies.

Shared sacrifice my a-s.

$540m debt is due tomorrow June 1. They just recently secured bonds to re-finance this. W/o the stock in an OK shape thanks to the dividend commitment nobody would give us anything anymore. Sad but true.

Dave does not do what he is doing for the money.... Just saying from someone who knows him.

As of Oct 2022 Seagate’s total debt was at 6.25B and that is a very hard number to get your head wrapped around. At 4.5% interest which is the average rate currently, we are looking paying 280 million annually just to service the interest (I’m not a banker so my numbers could be off). Add in 680 million a year in dividends plus stock buy backs…. well you get the picture. So when will Seagate be able to get back in the black financially? Good question for Heavy D in the next all hands but don’t hold your breath waiting for an answer.