Sandisk refinances revolving commitments with $1.5 billion facility due in 2031

Sandisk Corporation entered into an amendment on September 9 providing $1.5 billion in revolving credit commitments, according to Item 1.01 of its Form 8-K filed September 11. The commitments refinanced in full the revolving commitments outstanding under its existing Loan Agreement. The disclosed amount is borrowing capacity under the facility; the filing summary supplied here does not establish how much was drawn at closing.

Pricing and commitment fee

For dollar borrowings, Sandisk can choose an Adjusted Term SOFR Rate or Adjusted Daily Simple SOFR, plus 1.375% a year. Neither SOFR measure includes a credit spread adjustment. Alternatively, the company can elect a base rate plus 0.375% a year. These margins are subject to increases or decreases based on the Net Leverage Ratio or corporate family ratings. They are margins over the applicable reference rate, rather than a fixed total borrowing cost.

Undrawn revolving commitments carry a commitment fee of 0.175% a year, also subject to the leverage- or ratings-based adjustment mechanics. That fee distinguishes the cost of maintaining unused capacity from the interest payable on borrowings. The summary does not provide a drawn balance, so it does not support calculating Sandisk's total interest expense or undrawn commitment fees under the amended facility.

Maturity and currencies

For readers researching the flash and NAND storage company, the financing update sets out the replacement facility's size, borrowing costs and maturity. Amendment No. 1 modifies a Loan Agreement dated February 21, 2025. The parties include Sandisk, Sandisk Technologies, Inc., participating banks and other financial institutions, and JPMorgan Chase Bank, N.A., as administrative agent.

Guarantees, collateral, and covenants

Sandisk Technologies guarantees the obligations, which are secured by assets of both Sandisk and Sandisk Technologies. Future material U.S. wholly owned subsidiaries must also provide guarantees and asset security, subject to exceptions in the Loan Agreement. The amendment adds a conditional route to releasing collateral and guarantees if Sandisk achieves certain investment-grade corporate family ratings. That provision does not establish that the required ratings have been achieved or that a release has occurred.

The agreement retains customary restrictions, subject to exceptions, covering indebtedness and liens, mergers, asset transfers, dividends and distributions, investments, junior or subordinated debt payments, burdensome agreements and affiliate transactions. A financial covenant prohibits exceeding a maximum Leverage Ratio, but Item 1.01's summary does not specify its numeric threshold. Sandisk says its description is incomplete and qualified by the full amendment filed as Exhibit 10.1. The September 11 filing is a financing update; the disclosed terms do not establish a ratings action, use of proceeds or share-price reaction.

What remains undisclosed

The revolving facility matures September 9, 2031, when its commitments terminate, and has no amortization. Alongside U.S. dollar borrowings, it permits borrowing in euros, yen and additional currencies agreed by the lenders. The amendment therefore establishes a five-year commitment period from the agreement date, while the actual amount borrowed and any use of proceeds remain undisclosed in the available summary.

The Form 8-K AccNo 0001193125-26-389293 (Items 1.01 and 9.01, Exhibit 10.1) filed September 11, 2026, reports Amendment No. 1 dated September 9, 2026.