SanDisk to Float Convertible Notes Issue

SanDisk (NASDAQ: SNDK  ) is booting up an attempt to raise some capital. The company announced that it intends to float an issue of convertible senior notes in a private offering to qualified institutional buyers.

Up to $1 billion in principal amount will be issued in a series of notes maturing in 2020. The flash memory specialist also expects to grant the initial buyer an option to purchase up to an additional $150 million in principal amount to cover over-allotments.

The company said it intends to use its proceeds from the issue "to fund the cost of privately negotiated convertible note hedge transactions, which will serve to increase the effective conversion price of the convertible debt." It also aims to utilize some of the money to repurchase common stock from purchasers of notes in privately negotiated transactions, to repay debt, for strategic investments or acquisitions, to fund general stock repurchase initiatives, and for "other corporate purposes."

SanDisk said that Goldman Sachs will be the sole initial purchaser of the notes, which it will resell to qualified institutional buyers.

At the moment, SanDisk has just over 230 million shares of its common stock outstanding, which trade at $68.19 per share.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2695815, ~/Articles/ArticleHandler.aspx, 9/20/2014 4:19:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement