SanDisk $100 million convertibles talked at 4.5-5.0% yield, up 24-28%

By Ronda Fears

Nashville, Tenn., Dec. 19 - SanDisk Inc.'s $100 million of five-year convertible subordinated notes are expected to price to yield 4.5% to 5.0% with a 24% to 28% initial conversion premium. The Rule144A deal, via lead manager Morgan Stanley, is seen pricing after the close Wednesday.

The issue will be non-callable for three years. There is a $20 million greenshoe.

Sunnyvale, Calif.-based SanDisk, a supplier of flash data storage products, plans to use proceeds for general corporate purposes, including the development of new technologies and fabrication facilities, general working capital and capital expenditures. The company said it also may use a portion of the proceeds to fund acquisitions of products, technologies or complementary businesses, but noted that it currently has no commitments or agreements for any specific acquisitions.

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