SanDisk greenshoe lifts seven-year convertibles to $1.5 billion

By Toni Weeks

San Luis Obispo, Calif., Oct. 29 - The underwriter for SanDisk Corp.'s $1.3 billion issue of seven-year convertible senior notes exercised in full their over-allotment option for an additional $200 million of the convertibles, bringing the total sale to $1.5 billion.

The deal was initially expected to be $1 billion and was upsized at pricing on Oct. 24, at which time the deal's greenshoe was upsized to $200 million from $150 million.

Goldman Sachs & Co. was the bookrunner for the Rule 144A deal.

Proceeds will be used to fund the cost of a call spread, to repurchase shares of common stock from purchasers of the notes and for repayment of debt at maturity or via repurchases from time to time. In addition, proceeds will be used for potential strategic investment or acquisitions, to repurchase common stock under existing stock repurchase programs and for other general corporate purposes, including capital expenditures relating to manufacturing and technology.

SanDisk is a Sunnyvale, Calif.-based maker of flash storage cards used in consumer electronics.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.