SanDisk Prices $1.3 Bln Of Convertible Senior Notes

(RTTNews) - SanDisk Corp. (SNDK) said Thursday that it has priced $1.3 billion principal amount of Convertible Senior Notes due in 2020.

The size of the offering of the notes was increased from the previously announced aggregate principal amount of $1.0 billion. The notes were priced at 100% of the aggregate principal amount and will bear interest at a rate of 0.50% per annum.

The company has granted the initial purchaser for the offering a 30-day option to purchase up to an additional $200.0 million principal amount of notes from the Company to cover over-allotments, if any.

The sale of the notes is expected to close on October 29.

The company estimates that the net proceeds from the offering will be about $1.28 billion, or about $1.48 billion if the initial purchaser exercises its over-allotment option in full, after deducting discounts and estimated offering expenses.

The company plans 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 notes. In addition, the company plans to use a portion of the net proceeds to repurchase shares of its common stock from purchasers of the notes in privately negotiated transactions.

The remaining net proceeds are expected to be used for: the repayment at maturity, or repurchase from time to time, of a portion or all of the Company's currently outstanding indebtedness; potential strategic investments or acquisitions; the repurchase, from time to time, of shares of the Company's common stock pursuant to the company's existing stock repurchase programs; and other general corporate purposes, including capital expenditures related to manufacturing and technology.