Synaptics to redeem $525 million 0.5% convertibles due 2022

By Wendy Van Sickle

Columbus, Ohio, June 1 – Synaptics Inc. issued a notice to redeem all $525 million of its 0.5% convertibles senior notes due June 15, 2022 at par plus accrued interest on Aug. 4, according to an 8-K filing with the Securities and Exchange Commission.

Holders have the right to convert the notes until 5 p.m. ET on Aug. 3. The current conversion rate is 13.7267 shares per $1,000 principal amount plus a number of additional shares equal to 0.032 of a share.

The proceeds will also pay any related fees, expenses and costs, including interest on the convertible notes. Proceeds are also expected to be used for future acquisitions, additional repayment of existing debt and repurchases of shares of the company’s common stock.

The company has elected to settle any conversion by a combination settlement of cash and shares and expects to use cash on hand to fund the cash component of the redemption and any conversions.

Synaptics is a San Jose, Calif.-based developer and supplier of custom-designed human interface semiconductor product solutions that enable people to interact more easily and intuitively with mobile computing, communications, entertainment, and other electronic devices.

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