SanDisk refinances $1.5B revolving credit facility, extends maturity to 2031
What's the deal? SanDisk CorporationDealroom has a profile for this one. Try Dealroom → has entered into Amendment No. 1 to its loan agreement, establishing a $1.5 billion revolving credit facility. JPMorgan Chase Bank, N.A.Dealroom has a profile for this one. Try Dealroom → acts as administrative agent. The new commitments refinance in full the revolving commitments outstanding under the company's prior loan agreement, dated February 21, 2025.
Why now? The refinancing extends SanDisk's borrowing runway. The facility matures on September 9, 2031, carries no amortisation, and terminates the prior commitments in the process.
What are the terms? US dollar borrowings bear interest at SanDisk's option — either an adjusted SOFR rate plus a 1.375% margin, or a base rate plus 0.375%. Both margins step up or down based on the company's net leverage ratio or its corporate family ratings. SanDisk will pay a 0.175% commitment fee on undrawn amounts.
What's the fine print? The facility also allows borrowings in euros, yen, and other agreed currencies. Obligations are guaranteed by Sandisk Technologies Inc.Dealroom has a profile for this one. Try Dealroom → and secured by the assets of both entities. The amendment provides for the release of that collateral and those guarantees if SanDisk achieves certain investment-grade ratings.
What could go wrong? The loan agreement carries restrictions on SanDisk's ability to incur debt, pay dividends, make investments, and transact with affiliates. A financial covenant also caps the company's maximum leverage ratio.
The signal: At $1.5 billion, the facility sits in the top 9% of all post-IPO debt rounds recorded for the country, out of a sample of 4,896. The size and 2031 maturity give SanDisk sizeable, long-dated liquidity as it manages its balance sheet.
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