Tuesday, May 9, 2006
Flash memory card supplier SanDisk Corp. said it plans to sell $1 billion worth of convertible senior notes due in 2013 pursuant to a registration statement filed with the Securities and Exchange Commission.
Sandisk said it expects to grant the underwriters an option to purchase up to an additional $150 million principal amount of notes from the company to cover over-allotments.
The proceeds of the offering will be used for general corporate purposes, Sandisk said, including capital expenditures for new and existing manufacturing facilities, development of new technologies, general working capital and other non-manufacturing capital expenditures. Proceeds may also be used to fund strategic investments or acquisitions of products, technologies or complementary businesses, the company said, adding that no commitments or agreements have been made for specific acquisitions.
In order to reduce the potential dilution from conversion of the notes, Sandisk intends to use a portion of the net proceeds of the offering to enter into one or more hedging transactions on its common stock with the underwriters and/or their affiliates, the company said.
Morgan Stanley & Co. Inc. and Goldman Sachs & Co. are the joint book running managers for the offering and Thomas Weisel Partners LLC is serving as a co-manager for the offering.
By: DocMemory
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