Synaptics Incorporated Announces Proposed Convertible Senior Notes Offering
Synaptics announced plans to offer $400 million in convertible senior notes due 2031, with an additional $50 million option for initial purchasers. The notes will be senior, unsecured obligations with semi-annual interest payments. The company plans to use the proceeds to fund capped call transactions, repurchase up to $100 million of common stock, and repay its term loan facility. The notes will be convertible under certain conditions, with settlements in cash and potentially shares. Synaptics will have redemption rights after December 6, 2028, if stock price exceeds 130% of conversion price.
Synaptics ha annunciato piani per offrire 400 milioni di dollari in note senior convertibili scadenti nel 2031, con un'opzione aggiuntiva di 50 milioni di dollari per i primi acquirenti. Le note saranno obbligazioni senior e non garantite con pagamenti di interesse semestrali. La società prevede di utilizzare i proventi per finanziare transazioni di call limitate, riacquistare fino a 100 milioni di dollari di azioni ordinarie e rimborsare la sua linea di credito a termine. Le note saranno convertibili a determinate condizioni, con liquidazioni in contante e potenzialmente in azioni. Synaptics avrà diritti di riscatto dopo il 6 dicembre 2028, se il prezzo delle azioni supera il 130% del prezzo di conversione.
Synaptics anunció planes para ofrecer 400 millones de dólares en bonos senior convertibles con vencimiento en 2031, con una opción adicional de 50 millones de dólares para los compradores iniciales. Los bonos serán obligaciones senior no garantizadas con pagos de intereses semestrales. La empresa planea utilizar los ingresos para financiar transacciones de compra de opciones con límite, recomprar hasta 100 millones de dólares de acciones comunes y reembolsar su línea de crédito a plazo. Los bonos serán convertibles bajo ciertas condiciones, con liquidaciones en efectivo y potencialmente en acciones. Synaptics tendrá derechos de redención después del 6 de diciembre de 2028, si el precio de la acción supera el 130% del precio de conversión.
Synaptics는 2031년 만기인 4억 달러 규모의 전환 가능 고위험 노트를 제공할 계획을 발표했으며, 초기 구매자를 위한 추가 옵션으로 5천만 달러를 제안합니다. 이 노트들은 고위험, 담보 없는 의무로서 반기별 이자 지급이 있습니다. 회사는 이 자금을 제한된 콜 거래를 지원하고, 최대 1억 달러의 보통주를 재매입하며, 기한이 있는 대출 시설을 상환하는 데 사용할 계획입니다. 노트는 특정 조건 하에 전환 가능하며 정산은 현금 및 잠재적으로 주식으로 이루어집니다. Synaptics는 2028년 12월 6일 이후 주식 가격이 전환 가격의 130%를 초과할 경우 상환 권한을 가집니다.
Synaptics a annoncé des plans pour offrir 400 millions de dollars en obligations seniors convertibles arrivant à échéance en 2031, avec une option supplémentaire de 50 millions de dollars pour les premiers acheteurs. Les obligations seront des engagements seniors non garantis avec des paiements d'intérêts semestriels. La société prévoit d'utiliser les produits pour financer des transactions d'appels limitées, racheter jusqu'à 100 millions de dollars d'actions ordinaires et rembourser sa facilité de prêt à terme. Les obligations seront convertibles sous certaines conditions, avec des règlements en espèces et potentiellement en actions. Synaptics aura des droits de rachat après le 6 décembre 2028, si le prix de l'action dépasse 130 % du prix de conversion.
Synaptics hat Pläne angekündigt, 400 Millionen Dollar in wandelbare Senior Notes mit Fälligkeit 2031 anzubieten, mit einer zusätzlichen Option von 50 Millionen Dollar für Erstkäufer. Die Notes werden unbesicherte, nachrangige Verpflichtungen mit halbjährlichen Zinszahlungen sein. Das Unternehmen plant, die Erlöse zur Finanzierung begrenzter Kauftransaktionen, zum Rückkauf von bis zu 100 Millionen Dollar Stammaktien und zur Rückzahlung seiner Terminkreditfazilität zu verwenden. Die Notes werden unter bestimmten Bedingungen wandelbar sein, wobei die Abrechnung in bar und möglicherweise in Aktien erfolgt. Synaptics wird nach dem 6. Dezember 2028 Rückkaufrechte haben, wenn der Aktienkurs 130 % des Wandlungspreises übersteigt.
- Debt refinancing through convertible notes could potentially improve capital structure
- Implementation of capped call transactions to reduce potential dilution from note conversion
- Plan to repay term loan facility, which could reduce debt service costs
- Potential dilution risk for existing shareholders if notes are converted
- Additional debt obligation of $400-450 million
- Share repurchase program may inflate stock price artificially during notes pricing
Insights
This
The structure includes protective measures for both the company and investors, with conversion rights and redemption options after December 2028 at
SAN JOSE, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (Nasdaq: SYNA) today announced its intention to offer, subject to market and other conditions,
The notes will be senior, unsecured obligations of Synaptics, will accrue interest payable semi-annually in arrears and will mature on December 1, 2031, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Synaptics will settle conversions in cash and, if applicable, shares of its common stock.
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Synaptics’ option at any time, and from time to time, on or after December 6, 2028 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Synaptics’ common stock exceeds
If certain corporate events that constitute a “fundamental change” occur, then, subject to a limited exception, noteholders may require Synaptics to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.
Synaptics intends to use a portion of the net proceeds from the offering to fund the cost of entering into the capped call transactions described below. Synaptics expects to use up to
In connection with the pricing of the notes, Synaptics expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their affiliates and/or one or more other financial institutions (the “option counterparties”). The capped call transactions are expected to cover, subject to anti-dilution adjustments, the number of shares of Synaptics’ common stock that will initially underlie the notes. If the initial purchasers exercise their option to purchase additional notes, then Synaptics expects to enter into additional capped call transactions with the option counterparties.
The capped call transactions are expected generally to reduce the potential dilution to Synaptics’ common stock upon any conversion of the notes and/or offset any potential cash payments Synaptics is required to make in excess of the principal amount of converted notes, as the case may be, with such offset and/or reduction subject to a cap price. If, however, the market price per share of Synaptics’ common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such potential cash payments, in each case, to the extent that such market price exceeds the cap price of the capped call transactions.
Synaptics has been advised that, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to enter into various derivative transactions with respect to Synaptics’ common stock and/or purchase shares of Synaptics’ common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Synaptics’ common stock or the notes at that time.
In addition, the option counterparties and/or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Synaptics’ common stock and/or purchasing or selling Synaptics’ common stock or other securities of Synaptics in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so (x) on each exercise date for the capped call transactions, which are expected to occur on each trading day during the 40 trading day period beginning on the 41st scheduled trading day prior to the maturity date of the notes and (y) following any early conversion of the notes, any repurchase of the notes by Synaptics on any fundamental change repurchase date, any redemption date or any other date on which the notes are repurchased by Synaptics, in each case if Synaptics exercises the relevant election to terminate the corresponding portion of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of Synaptics’ common stock or the notes, which could affect the ability of noteholders to convert the notes, and, to the extent the activity occurs during any observation period related to a conversion of the notes, it could affect the number of shares and value of the consideration that noteholders will receive upon conversion of the notes.
The offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
About Synaptics
Synaptics (Nasdaq: SYNA) is leading the charge in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As the go-to partner for the world’s most forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is the force behind the next generation of technology enhancing how we live, work, and play.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the anticipated terms of the notes being offered, the completion, timing and size of the proposed offering, the intended use of the proceeds and the anticipated terms of, and the effects of entering into, the capped call and repurchase transactions described above. Forward-looking statements represent Synaptics’ current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Synaptics’ common stock, whether the offering will be consummated, whether the capped call transactions will become effective and other risks relating to Synaptics’ business, including those described in periodic reports that Synaptics files from time to time with the SEC. Synaptics may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offering or the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Synaptics does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
Investor Relations Contact
Munjal Shah
Head of Investor Relations
+1 408-518-7639
munjal.shah@synaptics.com
Media Contact
Patrick Mannion
Director of External PR and Technical Communications
+1 631-678-1015
patrick.mannion@synaptics.com
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