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S&P rates SanDisk notes BB
Standard & Poor's said it assigned a BB rating and 3 recovery rating to SanDisk Corp.'s senior convertible notes due 2020.
The 3 recovery rating indicates 50% to 70% expected default recovery.
The proceeds will be used for general corporate purposes, which could include internal investment and share repurchases, S&P said.
The agency said it rated the new notes the same as the corporate credit rating on the company.
The ratings reflect the company's narrow scope of business in highly volatile semiconductor flash memory markets and the substantial investment required to maintain technology and cost leadership, S&P said.
Leverage will remain at less than 2x over the coming year, but could temporarily spike to more than 2x due to market supply and demand volatility, the agency said.
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