Press Releases

SANDISK TO OFFER $1 BILLION OF CONVERTIBLE SENIOR NOTES

авг 18, 2010

 
MILPITAS, CA, August 18, 2010 - SanDisk Corporation (NASDAQ: SNDK), the global leader in flash memory cards, announced today its intention to commence an underwritten public offering, subject to market and other conditions, of $1.0 billion principal amount of Convertible Senior Notes due in 2017 pursuant to an effective registration statement previously filed with the Securities and Exchange Commission.  In addition, the Company expects to grant the underwriters an option to purchase up to an additional $150 million principal amount of notes from the Company to cover overallotments.

The Company currently intends to use the net proceeds of the offering for general corporate purposes, including (1) the repayment at maturity or repurchase, from time to time, of a portion of its outstanding $1.15 billion aggregate principal amount of senior convertible notes originally issued in 2006, which bear interest at a rate of 1% per annum and mature on May 15, 2013; (2) capital expenditures for new and existing manufacturing facilities; (3) development of new technologies; (4) general working capital; and (5) other non-manufacturing capital expenditures. The net proceeds may also be used to fund strategic investments or acquisitions of products, technologies or complementary businesses or to obtain the right or license to use additional technologies.  The Company currently has no such commitments or agreements for any specific acquisitions, investments or licenses.  In addition, the Company intends to use a portion of the net proceeds of the offering to fund the cost to it of the privately negotiated convertible note hedge transactions (after taking into account the proceeds to it from warrant transactions) that the Company intends to enter into with one or more dealers, each of whom may be an affiliate of an underwriter in the offering.  The Company also intends to enter into separate warrant transactions with such dealers or their affiliates, and anticipates that the warrants will have an exercise price that is up to approximately 75% higher than the closing price of the Company's common stock on the date the warrants are issued.  These convertible note hedge transactions and warrant transactions are expected to reduce the potential dilution with respect to the Company's common stock upon conversion of the notes; however, the warrant transactions will have a dilutive effect with respect to the Company's common stock to the extent that the market price per share of the Company's common stock exceeds the strike price of the warrants.

In connection with hedging these transactions, such dealers or their affiliates expect to enter into various derivatives transactions and engage in other activities that could have the effect of increasing or preventing a decline in the price of the Company's common stock in connection with the pricing of the note offering.  These activities may be discontinued at any time. In addition, in connection with any conversion of the notes, the dealers or their respective affiliates may enter into derivative transactions and engage in other activities that could adversely impact the price of the Company's common stock and of the notes.

Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. are the joint book running managers for the offering.

ABOUT THE OFFERING
A preliminary prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov.  Printed copies of the preliminary prospectus supplement relating to the offering may also be obtained from Morgan Stanley & Co. Incorporated, Prospectus Department, 180 Varick Street, New York, NY 10014 (telephone no. 212-761-6775) and Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, NY 10282 (telephone no. 212-902-1171, facsimile: 212-902-9316, email: prospectus-ny@ny.email.gs.com). 

The Company has filed a registration statement (File No. 333-157078) (including a prospectus and prospectus supplement) with the SEC for the offering.  Before you invest, you should read the prospectus and prospectus supplement to that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering.  You may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.

SCHEDULED WEBCAST
SanDisk will provide a live webcast of a management presentation on Thursday, August 19, 2010 at 8:00 A.M., Pacific Daylight Time.  Interested parties can access the webcast for the duration of the presentation, which is expected to be approximately one hour, at
http://www.thomson-webcast.net/us/dispatching/SandiskEvent20100818

FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, including statements regarding the Company's intent to offer the notes, enter into related transactions and intended use of proceeds from the offering that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate.  Risks that may cause these forward-looking statements to be inaccurate include among others:

  • competitive pricing pressures, resulting in lower average selling prices and lower or negative product gross margins;
  • less than anticipated demand, including due to economic weakness in our markets and among consumers generally;
  • unpredictable or changing demand for our products, particularly for certain form factors or capacities;
  • insufficient captive and non-captive memory supply to meet demand;
  • insufficient non-memory materials or capacity from our suppliers and contract manufacturers to meet demand; or increases in cost of non-memory materials or capacity;
  • our products may not perform as expected or may not be available at the prices, in the regions, in the capacities or at the time expected;
  • difficulties or delays in closing the proposed offering; and
  • other risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in our SEC filings and reports, including, but not limited to, our most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10-Q.

We do not intend to update the information contained in this press release.

ABOUT SANDISK
SanDisk Corporation is the global leader in flash memory cards, from research, manufacturing and product design to consumer branding and retail distribution. SanDisk's product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders; digital audio/video players; USB flash drives for consumers and the enterprise; embedded memory for mobile devices; and solid state drives for computers. SanDisk is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.

SanDisk and the SanDisk logo and are trademarks of SanDisk Corporation, registered in the United States and other countries.  Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

Investor Contact: Media Contact:
Jay Iyer Ryan Donovan
SanDisk Corporation SanDisk Corporation
408-801-2067 408-801-2857
 

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