SanDisk to offer $1B of convertible senior notes

theflyonthewall.com

SanDisk announced its intention to offer, subject to market and other conditions, up to $1.0B principal amount of Convertible Senior Notes due in 2020 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. In addition, the company expects to grant the initial purchaser for the offering an option to purchase up to an additional $150M principal amount of notes from the company to cover over-allotments. The company intends to use a portion of the net proceeds of the offering to fund the cost of privately negotiated convertible note hedge transactions, which will serve to increase the effective conversion price of the convertible debt. In addition, the company intends to use a portion of the net proceeds to repurchase shares of its common stock from purchasers of the notes in privately negotiated transactions, which will be consummated concurrently with the offering. Goldman, Sachs will act as the sole initial purchaser for resale of the offering to qualified institutional buyers

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