Synaptics cuts spread on $600 million term loan to Libor plus 225 bps

By Sara Rosenberg

New York, Oct. 20 – Synaptics Inc. reduced pricing on its $600 million seven-year first-lien term loan (Ba1/BB-) to Libor plus 225 basis points from Libor plus 250 bps and added a 25 bps step-down at 1x inside of opening total gross leverage, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from talk in the range of 99 to 99.5, the source said.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Barclays, Wells Fargo Securities LLC, MUFG and BMO Capital Markets are the joint bookrunners on the deal. CHCG is a co-manager. Wells Fargo is the administrative agent.

Recommitments were scheduled to be due at noon ET on Wednesday, the source added.

Proceeds will be used to fund the acquisition of DSP Group Inc. for $22.00 per share.

Closing is expected by the end of the year, subject to DSP Group shareholder approval and customary conditions.

Synaptics is a San Jose, Calif.-based provider of high performance IoT and PC semiconductor solutions. DSP is a provider of voice and wireless chipset solutions for converged communications.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.