If you own this stock, what you own is a share of 5 billion in debt. If ALL post dividend income is diverted to pay debt assuming last years peak income will continue forever, your talking 15-20 years to pay it off. How much will HDD income grow? LOL. A share of Seagate is like owning a share of somebodies underwater mortgage debt, and that someone is going to get laid off soon.
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$500 million is due next month in full. Or refinanced at >50% higher rates.
The plan would be to rollover the existing debt into new issues. The problem is that if the Fed keeps working to bring rates back to a normal level, any new long-term debt would have to be issued with a much higher yield, This would s--- even more money from operating income, possibly impacting Seagate's ability to keep the dividend at its current lofty level.
Don't worry, its not as if they will need the money to expand operations or fund development projects.