Synaptics Incorporated Prices $400.0 Million Convertible Senior Notes Offering
Synaptics announced pricing of $400.0 million convertible senior notes due 2031 with 0.75% interest rate, payable semi-annually. The initial conversion price is $99.69 per share, representing a 32.5% premium over the current stock price. The company plans to use $44.4 million for capped call transactions, $67.0 million to repurchase 890,483 shares, and the remainder plus $307.0 million cash on hand to repay its term loan facility. The notes will be redeemable after December 6, 2028, subject to certain conditions.
Synaptics ha annunciato il prezzo di 400,0 milioni di dollari di note convertibili senior con scadenza nel 2031, con un tasso d'interesse dello 0,75%, pagabile semestralmente. Il prezzo di conversione iniziale è di 99,69 dollari per azione, con un premio del 32,5% rispetto al prezzo attuale delle azioni. L'azienda prevede di utilizzare 44,4 milioni di dollari per operazioni di call cap, 67,0 milioni di dollari per il riacquisto di 890,483 azioni e il resto, insieme a 307,0 milioni di dollari di liquidità, per rimborsare la sua linea di credito. Le note saranno riscattabili dopo il 6 dicembre 2028, soggette a determinate condizioni.
Synaptics anunció el precio de 400.0 millones de dólares en notas senior convertibles con vencimiento en 2031, con una tasa de interés del 0.75%, pagadera semestralmente. El precio inicial de conversión es de 99.69 dólares por acción, lo que representa un 32.5% de prima sobre el precio actual de las acciones. La empresa planea utilizar 44.4 millones de dólares para transacciones de opción call con límite, 67.0 millones de dólares para recomprar 890,483 acciones, y el resto más 307.0 millones de dólares en efectivo para pagar su préstamo a plazo. Las notas serán redimibles después del 6 de diciembre de 2028, sujeto a ciertas condiciones.
Synaptics는 이자율 0.75%의 2031년 만기 전환형 선순위 채권 4억 달러의 가격을 발표했습니다. 초기 전환 가격은 주당 99.69 달러로 현재 주가 대비 32.5%의 프리미엄을 나타냅니다. 회사는 4,440만 달러를 캡 옵션 거래에 사용하고, 6,700만 달러를 890,483주의 자사주 매입에 사용하며, 나머지와 함께 3억 7,000만 달러의 현금을 활용하여 대출금 상환에 사용할 계획입니다. 이 노트는 2028년 12월 6일 이후 특정 조건에 따라 상환 가능합니다.
Synaptics a annoncé le prix de 400 millions de dollars d'obligations senior convertibles arrivant à échéance en 2031, avec un taux d'intérêt de 0,75 %, payable semestriellement. Le prix de conversion initial est de 99,69 dollars par action, représentant une prime de 32,5 % par rapport au prix actuel de l'action. La société prévoit d'utiliser 44,4 millions de dollars pour des transactions de capped call, 67,0 millions de dollars pour racheter 890,483 actions, et le reste, en plus de 307,0 millions de dollars de liquidités, pour rembourser sa facilité de prêt à terme. Les obligations seront rachetables après le 6 décembre 2028, sous réserve de certaines conditions.
Synaptics gab den Preis für 400,0 Millionen Dollar an konvertierbare vorrangige Anleihen mit Fälligkeit im Jahr 2031 bekannt, die einen Zinssatz von 0,75 % haben und halbjährlich zahlbar sind. Der anfängliche Umwandlungspreis beträgt 99,69 Dollar pro Aktie, was einer Prämie von 32,5 % gegenüber dem aktuellen Aktienkurs entspricht. Das Unternehmen plant, 44,4 Millionen Dollar für capped call-Transaktionen zu verwenden, 67,0 Millionen Dollar zum Rückkauf von 890,483 Aktien und den Rest sowie 307,0 Millionen Dollar an liquiden Mitteln für die Rückzahlung seiner Terminkreditfazilität. Die Anleihen können nach dem 6. Dezember 2028 unter bestimmten Bedingungen zurückgekauft werden.
- Secured $400 million in financing through convertible notes
- Strategic debt restructuring through term loan facility repayment
- Implementation of capped call transactions to reduce potential dilution
- Share repurchase program of 890,483 shares showing confidence in stock value
- Potential dilution risk if stock price exceeds cap price of $150.48
- Additional debt obligation with 0.75% interest rate
- Reduction in cash reserves by $307.0 million for loan repayment
Insights
This
- Debt restructuring with
$307M cash used to clear term loan facility - Share repurchase of 890,483 shares worth
$67M - Capped call transactions to minimize dilution with cap price at
$150.48
The structured financing deal reveals smart capital management. The capped call transactions with a
SAN JOSE, Calif., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (Nasdaq: SYNA) today announced the pricing of its offering of
The notes will be senior, unsecured obligations of Synaptics and will accrue interest at a rate of
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 a “fundamental change” (as defined in the indenture for the notes) occurs, 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.
Synaptics estimates that the net proceeds from the offering will be approximately
In connection with the pricing of the notes, Synaptics entered into privately negotiated capped call transactions with certain of the initial purchasers or their affiliates and certain other financial institutions (the “option counterparties”). The capped call transactions will cover, subject to anti-dilution adjustments, the number of shares of Synaptics’ common stock underlying 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 cap price of the capped call transactions is initially
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.
As described above, Synaptics intends to use a portion of the net proceeds of the offering to repurchase shares of its common stock concurrently with the pricing of the offering in privately negotiated transactions. These repurchases, and any other repurchases of shares of Synaptics’ common stock, may increase, or reduce the size of a decrease in, the trading price of Synaptics’ common stock, and repurchases executed concurrently with the pricing of the offering may have affected the initial terms of the notes, including the initial conversion price.
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 completion of the offering, the expected amount and intended use of the net proceeds 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, the satisfaction of the closing conditions related to the offering, whether the capped call transactions will become effective and other factors and 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 offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding 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
FAQ
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