plans to sell $1 billion in convertible notes, with the proceeds to be used for general corporate purposes.
The flash memory chipmaker lost some of its share value on the news, shedding 1.9%, or $1.90, to $62.80 after the bell. Earlier in the day, the stock had gained 3.5%, up $2.17 to $64.70.
SanDisk will use the proceeds from the sale for expenses, including capital expenditures for manufacturing facilities, research and development, investments or acquisitions, general working capital and other nonmanufacturing capital expenditures. The company said it does not have any agreements in place for any specific acquisitions.
The company also said it expects to grant the underwriters the option to purchase up to $150 million principal amount of notes from the company to cover over-allotments.
Morgan Stanley and Goldman Sachs are the joint book running managers, and Thomas Weisel Partners is a co-manager of the sale.