Synnex to price $100 million 10-year convertibles, talked to yield 3.5%-4%, up 35%-40%

By Rebecca Melvin

New York, May 6 - Synnex Corp. plans to price $100 million of 10-year convertible senior notes after the close Tuesday, according to a syndicate source.

The Rule 144A deal, being sold via bookrunner Banc of America Securities LLC with UBS as junior right-side bookrunner, was talked to yield 3.5% to 4% for the coupon and with an initial conversion premium of 35% to 40%.

There is an over-allotment option for an additional $15 million of notes.

The notes are non-callable for five years and are putable in year five.

There is contingent conversion subject to a 130% hurdle and contingent payment at a 120% hurdle. There is also dividend and takeover protection.

Synnex intends to use proceeds for general corporate purposes and to reduce outstanding balances under certain credit arrangements

Fremont, Calif.-based Synnex is a business process services company.

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