Western Digital Launches $3.09B SanDisk Share Sale, Includes Debt-for-Equity Swap
Western Digital is selling $3.09 billion of Sandisk shares, with no new issuance, including a debt-for-equity exchange underwritten by BofA. After Q2 revenue and EPS beat guidance, BofA raised its price target to $850 (from $390) and lifted fiscal 2026 revenue and EPS forecasts to $15.7B and $39.50.
1. Secondary Offering Details
On February 18, Western Digital announced a secondary sale of approximately $3.09 billion of its Sandisk shares. No new shares will be issued and all proceeds will go to Western Digital, with Sandisk receiving none of the funds.
2. Underwriting and Equity Exchange
The offering includes a concurrent debt-for-equity exchange, underwritten by Bank of America. J.P. Morgan Securities and BofA Securities are acting as joint lead book-runners and representatives of the underwriting syndicate.
3. Q2 Financial Performance
Sandisk reported fiscal second-quarter revenue and earnings per share above its own guidance, driven by strong memory pricing and higher margins. Management issued third-quarter guidance that also exceeded Wall Street expectations.
4. BofA Price Target Revision
Following the robust Q2 results, BofA raised its Sandisk price target from $390 to $850. The bank also increased its fiscal 2026 revenue forecast to $15.7 billion and EPS estimate to $39.50.