Synaptics Incorporated announced on November 14, 2024, the pricing of its offering of $400.0 million aggregate principal amount of 0.75% convertible senior notes due 2031. The notes were offered in a private placement to qualified institutional buyers, with settlement scheduled for November 19, 2024.
The initial conversion rate is 10.0308 shares of common stock per $1,000 principal amount of notes, representing an initial conversion price of approximately $99.69 per share, which is a 32.5% premium over the last reported sale price of $75.24 on November 14, 2024. Synaptics estimates net proceeds of approximately $387.7 million from the offering.
The company intends to use approximately $44.4 million of the net proceeds for capped call transactions and $67.0 million to repurchase 890,483 shares of its common stock concurrently with the offering. The remaining net proceeds, along with $307.0 million of cash on hand, will be used to repay the outstanding balance under its term loan facility, thereby restructuring its debt and reducing interest costs.
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