Midday Commentary: New SanDisk adds 2 points outright; existing SanDisk recoups with better shares

By Rebecca Melvin

New York, Oct. 24 - SanDisk Corp.'s newly priced 0.5% convertibles due 2020 traded up 2 points on an outright basis in early action Thursday after an upsized $1.3 billion of the seven-year senior notes came at the price points of revised talk.

The SanDisk 0.5% convertibles due 2020 were quoted at 102 bid, 102.25 offered.

Shares of the Sunnyvale, Calif.-based maker of flash storage cards were up more than 1% at $69.10.

The existing SanDisk 1.5% convertibles due 2017 seemed to reclaim their levels seen before the new deal launched and were quoted at 147.25 versus an underlying share price of $69.25.

Goldman Sachs & Co. was the bookrunner for the new SanDisk issue, which was upsized from an originally talked $1 billion. There is also a greenshoe for up to another $200 million of notes, which would lift the deal to $1.5 billion if exercised in full.

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