SanDisk Corp. SNDK Raises Capital

SanDisk Corp. (SNDK) stock is active in early trading today after the company priced $1 Billion of Convertible Senior Notes. Sandisk plans to use the proceeds for general corporate purposes.

Looking at the chart, SanDisk Corp stock has support at $40. A close below this level could result in the stock testing $37.50-$38.62.

SANDISK PRICES $1 BILLION OF CONVERTIBLE SENIOR NOTES

SanDisk Corporation (NASDAQ: SNDK), the global leader in flash memory cards, announced today that it has priced $1.0 billion principal amount of Convertible Senior Notes due in 2017. In addition, the Company has granted the underwriters an option to purchase up to an additional $150 million principal amount of notes from the Company to cover overallotments.

The notes will be senior unsecured obligations and will pay interest semiannually at a rate of 1.5% per annum. The notes will be convertible into shares of the Company's common stock at an initial conversion rate of 19.0931 shares per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $52.37 per share). The initial conversion price represents a premium of 25% to the $41.90 per share closing price of the Company's common stock on August 19, 2010. The notes will be convertible beginning on May 15, 2017, or earlier upon the occurrence of certain events. Upon conversion of the notes, holders will receive cash up to the principal amount of each note, and any excess conversion value will be delivered in shares of the Company's common stock.

http://www.sandisk.com/about-sandisk/press-room/press-releases/2010/2010-08-20-sandisk-prices-$1-billion-of-convertible-senior-notes