Synaptics $100 million convertible talked at 0.75%-1.0% yield, up 35%-40%

Nashville, Nov. 30 - Synaptics Inc. launched late Tuesday $100 million of 20-year convertible notes talked to yield 0.75% to 1.0% with a 35% to 40% initial conversion premium.

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

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

There is a 120% contingent conversion trigger.

Full dividend and takeover protection is provided for holders.

A $20 million greenshoe is available.

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.

Synaptics shares closed Tuesday up 73 cents, or 1.94%, at $38.40, but on the convertible news the stock was down $1.90, or 4.95%, in after-hours trading.

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