Synaptics prices $100 million convertibles to yield 0.75%, up 40%

New York, Dec. 1 - Synaptics Inc. priced $100 million of convertible senior subordinated notes due 2024 to yield 0.75% with a 40% initial conversion premium.

The deal priced at the rich end of talk which put the yield at 0.75% to 1.0% with a 35% to 40% initial conversion premium.

The conversion price is $50.53 and the conversion ratio 19.7918.

Bear Stearns & Co. Inc. and Credit Suisse First Boston are joint bookrunners of the Rule 144A deal, which priced after the market close Wednesday.

The senior subordinated notes will be non-callable for five years, with a put in year five.

Full dividend and takeover protection is provided for holders.

A $25 million greenshoe is available.

There is a 120% contingent conversion trigger.

The San Jose, Calif.-based company expects to use the net proceeds of the offering for working capital and general corporate purposes and potentially for future acquisitions. The company currently has no understandings or agreements with respect to any acquisitions.

Synaptics makes components for notebook computers, such as the signature scroll wheel on Apple Computer Corp.'s popular iPod.

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