SanDisk To Offer Up To $1.0 Bln Of Convertible Senior Notes Due 2020

(RTTNews) - SanDisk Corp. (SNDK) plans to offer up to $1.0 billion principal amount of convertible senior notes due in 2020 in a private offering to qualified institutional buyers. Further, it expects to grant the initial purchaser for the offering an option to buy up to an additional $150 million principal amount of notes from the company to cover over-allotments.

The company intends to use a portion of the net proceeds to fund the cost of privately negotiated convertible note hedge transactions, which would serve to increase the effective conversion price of the convertible debt. Additionally, SanDisk plans to use a part of the net proceeds to buy back common stock from purchasers of the notes in privately negotiated transactions, which would be consummated concurrently with the offering.

Goldman, Sachs & Co. would act as the sole initial purchaser for resale of the offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.