Sandisk Corporation (NASDAQ:SNDK) finished the week basically flat after giving back all of its gains from earlier in the week. The stock reacted poorly after selling $1 billion in debt. This stock has been one of the stronger stocks in 2010 and a major component of the NASDAQ 100. Sandisk Corp will have near term support around the $39.00 area. Should the stock continue to decline the next important weekly support area will be around the $35.00 level. If Sandisk Corp somehow reverses its near term down trend then the stock will have strong weekly chart resistance around the $46.00 area.
SanDisk Prices $1 Billion of Convertible Senior Notes 6:10a ET August 20, 2010 (Business Wire)
SanDisk Corporation (NASDAQ:SNDK), the global leader in flash memory cards, announced today that it has priced $1.0 billion principal amount of Convertible Senior Notes due in 2017. In addition, the Company has granted the underwriters an option to purchase up to an additional $150 million principal amount of notes from the Company to cover overallotments.
The notes will be senior unsecured obligations and will pay interest semiannually at a rate of 1.5% per annum. The notes will be convertible into shares of the Company's common stock at an initial conversion rate of 19.0931 shares per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $52.37 per share). The initial conversion price represents a premium of 25% to the $41.90 per share closing price of the Company's common stock on August 19, 2010. The notes will be convertible beginning on May 15, 2017, or earlier upon the occurrence of certain events. Upon conversion of the notes, holders will receive cash up to the principal amount of each note, and any excess conversion value will be delivered in shares of the Company's common stock.
So, does that mean I have to wait till 2017 till I break even?