Synaptics draws $100 million under $200 million revolving facility

By Sarah Lizee

Olympia, Wash., April 2 – Synaptics Inc. drew $100 million under its $200 million revolving credit facility with Wells Fargo Bank, NA as administrative agent on Monday, according to an 8-K filing with the Securities and Exchange Commission.

Following the draw, $100 million remains available under the revolver.

The company said it borrowed under the credit agreement in order to increase its cash position and preserve financial flexibility out of an abundance of caution as a result of the ongoing uncertainty and volatility in the global markets driven by the Covid-19 outbreak.

The proceeds from the borrowing under the credit agreement initially will be held on the company’s balance sheet and may be used for general corporate purposes.

Borrowings are scheduled to be repaid in full on the earlier of Sept. 27, 2022 and the date 91 days prior to the maturity date of the company’s convertible debt due June 15, 2022 if the convertible debt is still outstanding by then, subject to some exceptions based on specific covenant calculations.

The company may repay amounts borrowed at any time without penalty.

Interest is Libor plus 100 basis points to 175 bps.

Synaptics is a San Jose, Calif.-based developer of human interface solutions for mobile phones, smartphones, tablets and notebook computers.

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